Elm Analytics - Automotive Supply Chain Risk Digest #101 - January 11 - 17, 2019
CHANGE IN MANAGEMENT
Ford Canada has announced that former executive Dean Stoneley will return to the automaker to serve as its president and CEO starting on February 1. Stoneley will replace current CEO Mark Buzzell, who will move on to serve as Ford's director of North American fleet, lease and remarketing operations.
Chassix has named former ZF Group Asia Pacific division President Andreas Weller as its new President and CEO.
As part of a realignment, IAC has changed its leadership structure. The team now includes David Prystash (CFO), Iwona Niec Villaire (executive vice president, general counsel), Kelly Bysouth (chief supply chain officer) and David Pascoe (chief technology officer).
Nissan is cutting up to 700 contract workers at its assembly plant in Canton, Mississippi. The cited reason for the cuts is a slowdown in van and Titan pickup truck sales.
Tens of thousands of workers walked off the job in the industrial complexes of Matamoros, Mexico. Over 47 companies are affected including Polytech Netting, Inteva, Dura, AFX, Autoliv and Parker. There are significant differences between the workers, their unions and the manufacturers.
The Unite union said that Ford will cut 1,150 jobs in Britain. Almost 1,000 of the cuts will be at the Bridgend engine plant in Wales.
Hyundai and Kia are recalling around 168,000 vehicles in the U.S. over a risk of fuel leaks. The same vehicles had already been recalled in 2017 for engine fire risks.
MERGERS, VENTURES, ACQUISITIONS
Velodyne is licensing its lidar technology to Veoneer.
Ford and Volkswagen have announced a new partnership to build medium pickup trucks for global customers starting in 2022. They are also committing to exploring potential collaboration on EVs, autonomous vehicles and mobility services.
Magna will open a development and test center with Beijing Electric Vehicle in Zhenjiang, China.
Xilinx has partnered with ZF to provide an AI-based automotive control unit for autonomous vehicles.
China's GAC Motor has announced that it will base its North American sales operations in Irvine, California. Due to the escalating trade war with China, the automaker will not debut in the U.S. until at least 2020.
Ford is shuttering its Chariot ride sharing services by March. It purchased the San Francisco mobility company in 2016. Routes in the US and UK will end February 1, 2019.
In a meeting with Canadian officials at the North American International Auto Show in Detroit, Michigan this week, GM reaffirmed their decision to close their Oshawa, Ontario assembly plant. The closure will happen by the end of the year, putting over 2,600 people out of work.
Chinese automaker Geely will build Lotus cars in China for the first time at a brand new $1.3b plant in Wuhan City. A start date for operations has not been announced, but the facility is approved to build EVs, electric hybrids and traditional combustion engine cars.
Continental broke ground on a new powertrain plant in Talegaon, India. The facility will open in 2020.
Volkswagen will invest $800m into a new EV assembly plant next to its existing plant in Chattanooga, Tennessee. The plant will employ around 1,000 people and start producing EVs for sale in North America in 2022.
U.S. automakers are pressing the Trump administration and California to agree on fuel efficiency and carbon emissions standards through 2025. The administration is supposed to finalize new rules by the end of March.
British Prime Minister Theresa May survived a "no confidence" vote on Wednesday evening an will stay on as Prime Minister. The vote came a day after her Brexit legislation was voted down by a margin of 432 to 202.
Senate Finance Committee Chairman Charles Grassley says that President Trump may be "inclined" to place new tariffs on vehicles imported from Europe. He went on to say that "...It may be the instrument that gets Europe to negotiate.".
With the U.S. government shutdown still ongoing, the EPA cannot certify new vehicle models.