Elm Analytics - Automotive Supply Chain Risk Digest #126 - July 5 - 11, 2019
CHANGE IN MANAGEMENT
Automotive mechatronics supplier Brose North America has named Wilhelm Uhlenbecker as its new president. Uhlenbecker was previously the president and CEO of Akebono Brake Corporation.
Chinese automaker Geely has reported a 40% drop in profit for the first half of this year. The drop is being blamed on a "greater-than-expected-decrease" in sales and efforts to reduce dealership inventories.
Israel-based startup REE is taking a new approach to building cars by "reinventing the wheel". Their new vehicle platofrm places the motor, steering, suspension, drivetrain, sensors, brakes, thermal systems and electronics into the vehicle's wheels.
FCA is recalling around 83,000 V-6 equipped 2014 Jeep Grand Cherokees over a tranmission defect that could cause vehicles to shift into neutral unexpectedly. In addition to the US vehicles affected, there are around 10,485 affected vehicles in Canada, 287 in Mexico, and 6,758 outside North America.
Ford is recalling around 58,000 Focus sedans over a software issue. The automaker says the vehicles did not receive the correct software that will detect a malfunctioning canister purge valve.
Mazda is recalling over 262,000 cars and SUVs in the US over a software issue that could cause engines to stall. The recall covers Mazda6 sedans and CX-5 SUVs from 2018 and 2019, as well as the 2019 Mazda3.
MERGERS, VENTURES, ACQUISITIONS
Toyota and Denso are setting up a new JV to develop next generation automotive semiconductors. They are aiming to establish the company in April 2020 and hire about 500 employees.
A fire broke out at Ford's Axle plant in Sterling Heights, Michigan earlier this week. The automaker says that there won't be any supply chain disruptions.
Modular assembly supplier Dakkota Integrated Systems has announced plans to build a new $55m, 600,000sf plant in Detroit, Michigan. The company expects to create 625 jobs at the plant and will give priority to applicants that live in Detroit.
German injection molded components supplier Gerhardi Inc. have opened a new $41.6m plant in Montgomery, Alabama. The facility is the supplier's first in the US and will employ up to 235 people.
Top Korean plastic manufacturer Korea Engineering Plastics has reportedly had most of its production lines shut down for about two months. Despite the complete stoppage of operations, its being reported that KEP restarted partial operations in June.
Tesla is gearing up to increase production at its plant in Fremont, California. In addition, the automaker is also looking to get back into hiring mode despite several rounds of job cuts over the past year.
Senior German Trade official Peter Beyer is warning the European Union to brace for U.S. tariffs on several fronts in the months ahead. He added that while there was continued U.S. interest in trade dialogs, the Trump administration still appears poised to impose tariffs.
BMW's production chief said this week that the automaker has moved some engine production outside of Britain due to Brexit uncertainty. Britain is due to leave the EU on October 31 of this year.
Jaguar Land Rover has announced a commitement to make EVs in the UK. IN addition, they are also urging the government and industry to work together in bringing gigascale battery production to the country.