Discover more from Automotive Supply Chain Risk Digest
Elm Analytics - Automotive Supply Chain Risk Digest #129 - July 26 - August 1, 2019
German supplier Eisenmann filed for insolvency as the Stuttgart District Court this week. The company said it is looking for a strategic partner and some potential buyers have already expressed interest.
British logistics provider, Syncreon Automotive, is seeking Chapter 15 recognition in Delaware. The company filed for bankruptcy in the United Kingdom last week.
Ford supplier Martinrea heavy stamping is laying off 192 workers at its plant in Shelbyville, Kentucky next week. The plant is transitioning from making parts for the old Ford Escape to the newer model and does not need as many employees to handle production.
The Q2 2019 Automotive Tooling Barometer Survey from Harbour Results and OESA showed the sector continued its slowdown.
Automotive program delays drove work-on-hold to a record high of more than 20%.
Toolmaker capacity hit its lowest level since 2016.
Tool shop owner sentiment dropped to 61% in line with auto supplier executives, which is at its lowest since 2009
Renault and Bosch are forecasting a broad industry slowdown.
Former Audi CEO Rupert Stadler has become the latest executive to be charged in the ongoing VW emissions scandal. Stadler is facing charges, including fraud, false certification, and criminal advertising practices.
MERGERS, VENTURES, ACQUISITIONS
Ford has acquired transportation systems software maker Journey Holding to help speed development of autonomous vehicle services. Journey will combine with software maker TransLoc, which Ford purchased last year, for a yet to be named new company.
A fire at GM's Saginaw Metal Casting Operations is currently under investigation. Although cleanup will take a few days, the production line is expected to be back online. The plant supplies GM's SUVs and midsize trucks.
BMW is doubling the capacity of its Spartanburg, South Carolina battery facility. It added a new assembly line and expanded the area to 86k sf to support hybrid electric versions of the X3 and X5.
Toyo Tire is planning to build a new $435m plant in Indija, Serbia. The plant will have 539 employees in the first phase and begin manufacturing tires in January 2022.
Magna Seating has broken ground on a new plant in Lancaster, Ohio. The plant will cover 150k sf and create around 300 new jobs for the area.
Germany's Roechling Automotive opened a new plant in Kočkovce, Slovakia. The engineered plastic components supplier began construction of the 83k sf plant in late 2017.
Michigan's Motus Integrated Technologies, will open a manufacturing facility in Gadsden, Alabama. The 96k sf facility will produce headliners, interior door and console armrests, and instrument panel trim components.
Production at GM's transmission plant in Warren, Michigan ended this week as part of the automaker's previously announced closures. Most of the 265 employees have been relocated to other facilities.
PSA Group CEO Carlos Tavares says that the automaker will shut down its plant in Ellesmere Port if a no-deal Brexit occurs. Britain is scheduled to leave the EU on October 31.
GM is planning temporary layoff weeks through the remainder of this year at its CAMI plant in Ingersoll, Ontario, Canada. The first layoff week is scheduled for the week of September 30, but the exact dates for other layoff weeks have not yet been confirmed.
Supply for silicone isn't likely to improve for two to three years.
Automakers are pushing Congress to approve the USMCA in a renewed effort.
The House Energy and Commerce Committee and Senate Commerce Committee are working to pass stalled legislation that would help speed up the adoption of self-driving cars. The committees have requested input from automakers and safety groups by August 23.
President Trump tweeted this week that he will enact a 10% tariff on the remaining $300b of Chinese imports on September 1. The President noted that trade talks with China are still ongoing.