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Elm Analytics - Automotive Supply Chain Risk Digest #120 - May 24 - 30, 2019
The China Association of Automobile Manufacturers says that EV makers in China will use 80% of their annual production capacity in 2019 and 2020. They estimated that annual sales in 2019 will range between 1.6-1.7m vehicles and exceed 2m in 2020.
Jason Stein: In Europe, a storm is brewing
Increasing amounts of unsold vehicle inventory levels are prompting increases in incentives.
A lockout notice was issued to port workers at the Port of Vancouver earlier this week amidst ongoing labor negotiations between the longshoreman's union and the BC Maritime Employers Association.
The lockout ended for 6.5k workers after a tentative deal was reached.
France's Lebronze Alloys has filed a lawsuit alleging Tesla hasn't paid for $1.7M for supplied metal engine components.
Prosecutors in Stuttgart, Germany raided Porsche's offices in Weissach and Stuttgart over confidential information leaks and "disproportionate" payments to a member of Porsche's works council.
MERGERS, VENTURES, ACQUISITIONS
FCA has released a detailed plan for a 50-50 merger with French automaker Renault. Renault says they will study the proposal "with interest."
Renault's 43.4% stake in Nissan could shake up the full-size pickup market through consolidation or separation. Italy's stake in Fiat, France's stake in Renault and Japan's government interest in Nissan promise to keep negotiations lively.
GM is teaming up with construction company Bechtel to build thousands of EV fast-charging stations across the U.S. The partnership will see the creation of a new company to make the chargers.
France's Hutchinson will form a joint venture with Germany's Mann+Hummel. Hutchinson will acquire 60% of Thermal Control Systems Automotive (TCFR), which produces thermal management and battery cooling technologies.
Aurora Innovation will acquire lidar manufacturer Blackmore Sensors and Analytics.
Webasto Roof Systems will expand an existing Auburn Hills, Michigan facility to serve as its headquarters.
Toyota has announced a new $52.6M plant near Yangon, Myanmar. The plant is the automaker's first in Myanmar and will build 2,500 Hilux vehicles per year starting in 2021.
Japanese supplier Denso is investing $290M into a new plant in Guangzhou, China. The plant will be over 1m sf and is expected to start operations in 2021.
GM is investing $24M into its assembly plant in Fort Wayne, Indiana to increase the production of its Chevy Silverado and GMC Sierra full-size pickups. The automaker declined to release specifics about the production increase.
If Beijing makes good on its threat to use its dominance of rare earth metals as a tactic in the ongoing U.S.-China trade war, many U.S. industries could face severe disruptions.
President Trump announced a 5% tariff on all imported goods from Mexico. The tax would be imposed June 10th in response to immigration issues. The move is speculated to affect pending NAFTA revisions.
European Union trade chiefs have rejected an idea floated by President Trump earlier this month to fix quotas on European automotive exports to the U.S. The EU stated in January that they would apply up to €20B of tariffs on the import of U.S. goods if Trump imposes duties on European cars and auto parts.