Elm Analytics - Automotive Supply Chain Risk Digest #95 - November 30 - December 6, 2018
CHANGE IN MANAGEMENT
FCA has hired former Amazon VP of Operations Mark Stewart as its new COO. The position was previously held by FCA CEO Mike Manley.
Padmasree Warrior, CEO of Nio USA, will resign on Dec. 17 for "personal interests," the company said. China's Nio is a large electric vehicle startup.
GM CEO Mary Barra will step in to oversee GM Financial starting on January 1, 2019. GM President Dan Ammann, who has been managed the financial business unit since 2014, is departing to head the automaker's Cruise autonomous vehicle unit.
US light-vehicle sales were down 0.5% in November. Although above November forecasts, the weak demand for passenger cars and a slowing market follow a five year decline.
UK car sales fell 3% in November over continued Brexit uncertainty and a 17% drop in diesel sales. A reduction in gas car registrations and compliance with new WLTP emissions regulations also contributed to the decline.
Despite the planned closure of its Oshawa plant, GM Canada CEO Travis Hester says that the automaker will still be adding jobs in Canada. He says that the CAMI plant in Ingersoll and the St. Catharine's powertrain plant are safe "for the immediate future.".
New York City taxi regulators have approved new pay standards for app-based car services such as Uber and Lyft. The new rules are intended to result in drivers earning $17.22/hr.
Automotive News Europe: Why alliances are more crucial than ever to auto companies' survival
MERGERS, VENTURES, ACQUISITIONS
Toyota is taking full ownership of its joint assembly plant with PSA Group in Kolin, Czech Republic in 2021. The plant currently makes the Citroen C1, the Peugeot 108 and the Toyota Aygo.
GM CEO, Mary Barra, met with lawmakers this week in Washington, DC. Ohio Senators pressed Barra to keep the Lordstown plant open.
Over the years, Ohio auto suppliers have diversified their customer bases. They expect that this will allow them to weather the GM Lordstown plant shutdown.
Workers were evacuated when fire broke out in a ventilation system at Green Tokai Co. The Brookville, Ohio manufacturer produces injection molded parts and extrusions.
Bosch is investing $45m into expanding its Anderson, South Carolina plant. Part of the expansion will be purchasing the nearby Bosch/Denso JV AFCO plant.
German auto interior supplier Draexlmaier has completed a $42.7m expansion at its plant in Duncan, South Carolina. The expansion will create 460 new jobs at the plant.
FCA has announced plans to convert its idled Mack II engine plant into a new SUV assembly factory in Detroit, Michigan. It would be the first new assembly plant to open in Detroit in 27 years.
French industrial gas company Air Liquide is planning to build a $150m liquid Hydrogen plant in the western U.S. The plant will be able to produce about 30 tons of hydrogen per day and construction is expected to start early next year.
Korean battery maker SK Innovation is building a new $1.67b plant in Jackson County, Georgia. The plant will create more than 2,000 jobs and supply batteries to Mercedes-Benz and Hyundai-Kia Motors.
The Republic of the Congo - Democratic Republic of Congo has nearly tripled the royalty rate on cobalt from 3.5% to 10%. The African country produces more than 60% of the world's cobalt.
President Trump and Chinese President Xi Jinping have agreed to halt any new tariffs for 90 days while their countries negotiate a lasting agreement. If no progress is made after 90 days, the U.S. will raise the tariff it has on $200b worth of Chinese goods from 10% to 25%.
Tightly kept internal systems is one of the few ways to deal with the electronic component shortage affecting supply chains.