CHANGE IN MANAGEMENT

Daimler AG CEO Dieter Zetsche and CFO Bodo Uebber are retiring. Ola Kallenius will become the new CEO. Daimler shareholders also approved an overhaul to separate the group into three separate legal units: cars, trucks, and financial services.

Harald Krueger reportedly may not be serving a second term as BMW CEO. There are concerns that there is not a strong, clear strategy in BMW's shift to electric and autonomous vehicles.

Takao Kato will succeed Mitsubishi Motors CEO Osamu Masuko in June. Masuko will remain chairman.

EARNING DIP

Visteon reported a hit of $3m due to "inefficiencies" in a factory move within the same industrial park. The Reynosa, Mexico plant produces instrument clusters. The facility incurred both high labor and premium freight costs to keep up with customer demand. Additionally, issues with manufacturing a new curved display dropped its gross margin by $7m.

Automotive New China: Don't blame the loss of US brand market share in China on tariffs. It is the lack of new model launches.

HUMAN CAPITAL

Ford has announced plans to lay off 7,000 workers worldwide as part of its global restructuring plan. CEO Jim Hackett says that the restructuring should be complete by the end of August.

Amidst a global decline in auto sales, carmakers all over the globe have announced at least 38,000 job cuts in the past six months. 

INDUSTRY DIRECTIONS

Automotive News released short interviews with North American CEOs from BMW, Nissan, and Toyota.

Could the rise of electric cars be a significant job killer? The concern is a real one near the VW plant in the German town of Zwickau.

LITIGATION

German prosecutors have fined Bosch $100m for their role in providing equipment and software that allowed automakers to engage in emissions cheating. Bosch is accepting the fine and will not appeal the decision.

MERGERS, VENTURES, ACQUISITIONS

Japan's Nidec will buy Omron to focus on traction motors for electric vehicles. In 2018, Nidec formed a joint venture with PSA Group to build traction motors in France.

Geely and Daimler established a 50/50 joint venture to offer mobility services in China. This is part of a strategic initiative put in place after Geely purchased 9.7% of Daimler in 2018.

PLANT DISASTER

A small fire was reported at Toyota's plant in Georgetown, Kentucky this week. The cause and damage were not reported.

PLANT OPENING

Canadian supplier Advanced Design Solutions is building a new plant in Lawrenceburg, Tennessee at the site of an abandoned bicycle and lawn equipment plant. The company will invest $10m and create around 180 new jobs.

A new joint venture formed by a trio of Mazda and Toyota suppliers is building a new plant on the site of the new Mazda Toyota plant in Huntsville, Alabama. Y-tec Keylex Toyotetsu Alabama (YKTA) will invest $220m into the facility and create 650 new jobs.

PRODUCTION DECREASE

FCA is expanding investment in Brazil by $4b as part of its plan to regain lost market share in the country. The spending will go toward increasing annual production capacity at a Jeep plant in Pernambuco and building a new plant for producing turbo engines.

REGULATION

Trump announced a 180-day delay imposing tariffs on the EU and Japan's auto industry.

Canada and Mexico have followed President Trump's lead and lifted tariffs on US steel and aluminum imports.

Chinese automaker GAC Motor is postponing their entry into the US market due to the ongoing trade dispute between the US and China. GAC had intended to start selling cars in America starting in early 2020.