Elm Analytics - Automotive Supply Chain Risk Digest #121 - May 31 - June 6, 2019
CHANGE IN MANAGEMENT
No less than eight Nissan executives have left in the past five months.
GM is partnering with Michelin to introduce airless tires on passenger vehicles by 2024. Real-world testing of the new tire tech will start this year in Michigan.
Renault Samsung's workers kept the engine production line running despite the union leaders call to strike.
Chinese regulators have imposed a $23.6m fine on Ford's JV with Changan Automobile for antitrust law violations. China's State Administration for Market Regulation says the automaker set minimum resale prices on its cars sold in Chongqing.
A US appeals court in California has restored a $210m nationwide class-action settlement for hundreds of thousands of Hyundai and Kia owners whose fuel economy estimates were inflated. The decision reverses a January 2018 ruling decertifying the agreement.
MERGERS, VENTURES, ACQUISITIONS
Fiat Chrysler has withdrawn its offer to merge with Renault. FCA cited political conditions in France as the reason the two-week-old deal fell apart. France is Renault's largest shareholder.
BMW and Jaguar Land Rover will work together on developing next-generation electric motors, transmission and power electronics. The automakers say they will save costs through shared development, production planning, and joint purchasing.
Subaru and Toyota are partnering up to develop a new electric vehicle platform. The automakers will jointly develop a compact SUV to be sold under both brands.
Ford is closing its UK engine plant in Bridgend, Wales by 2020. The closure will put 1,700 employees out of work.
Samsung subsidiary Harman is investing $50m into the expansion of its automotive electronics plant in Chakan, India. The development will triple the plant's production capacity by 2021.
China's Great Wall Motor has opened its new $500m assembly plant in Russia after five years of construction. The plant will produce up to 150,000 vehicles a year initially.
Tiberina Group purchased 10 acres of land at the former American Axle plant in Detroit. The company supplies body-in-white and metal stampings
Daechang Seat Co., Ltd. USA is opening a $9m plant in Phenix City, Alabama. The plant will produce automotive seat frames and create 100 jobs.
BMW opened its first assembly plant in Mexico this week. The opening comes just a week after President Trump's current tariff threat on Mexican imports.
UK vehicle production fell nearly 45% in April, down 23% for the year.
After two days of meetings in Washington this week, the US is still planning to move forward with a 5% tariff on Mexican imports. The White House is looking for Mexico to crack down on the flow of undocumented migration from Central America.
Los Angeles Times: For the US and China, it's not a trade war anymore — it's something worse.