Elm Analytics - Automotive Supply Chain Risk Digest #140 - October 11 - 17, 2019
Dura Automotive Systems has filed for Chapter 11 Bankruptcy. The supplier has obtained a commitment from an entity controlled by CEO Lynn Tilton for a $77m investment towards its restructuring. This financing will fund Dura's ongoing business operations and capital expenditures for future platforms.
China's Zotye is unable to pay its bills, and a leaked memo suggests that it may file for bankruptcy soon. Its 2017 plans to form a joint venture with Ford haven't finalized.
CHANGE IN MANAGEMENT
Former Mitsubishi production chief Vincent Cobee is reportedly set to become the new head at PSA's Citroen unit. Current CEO Linda Jackson would take on a new role inside the group, according to the report.
Toyota is looking to hire 400 workers at its plant in Georgetown, Kentucky, as soon as possible. New hires will receive a $500 signing bonus if they remain on the job for at least six months.
Volvo is setting a goal to be climate neutral by 2040. Integral to the target is a lineup of full-electric cars led by the XC40 P8 AWD Recharge, which debuted this week.
The UAW has reached a tentative deal with GM that promises permanent jobs for temps, record ratification bonuses, and the elimination of a cap on profit sharing. The strike will continue until UAW membership approves the new proposed contract.
Daimler is recalling a "medium six-figure" number of Mercedes-Benz vehicles over diesel emissions issues. The recall will include around 260k Sprinter vans.
FCA is facing a $79m US civil penalty for failing to meet 2017 fuel economy requirements, according to the automaker. NHTSA says its review of 2017 vehicles showed "automakers falling further behind current standards."
MERGERS, VENTURES, ACQUISITIONS
Faurecia is buying the remaining 50% stake in its SAS JV with German auto supplier Continental. Faurecia and Continental formed SAS in 1996, and the company has become a key player in complex interior module assembly and logistics.
Hyundai has announced plans to invest $34.6b into mobility and other auto technologies by 2025. The automaker says the investment will encompass autonomous, connected, and electric vehicles and ride-sharing technology.
Detroit-based supplier Piston Automotive has acquired Ohio-based brake module supplier Marion Industries. The plant will operate as a Piston Automotive assembly plant location and supply brake modules to Honda of America.
Hi-Lex Corporation is closing its plant in Port Talbot, England, by 2021 due to an expected "significant reduction in sales." The closure will mean a loss of 125 jobs.
U.K.-based supplier Arlington Automotive will invest $4.6m into expanding its plant in Romeo, Michigan. The expansion will create 70 new jobs for the area.
Subaru has halted production at two of its plants near Tokyo as a result of flood at a crucial parts supplier due to typhoon Hagibis. The automaker expects to resume full operations on October 25.
US Treasury Secretary Steve Mnuchin said this week that the US and China had reached a "fundamental agreement" on trade that is still "subject to documentation." As a result, President Trump will postpone tariffs on the remaining $300b of Chinese goods not already subject to duties.
Two US senators are proposing legislation requiring automakers to install technology in new vehicles that would prevent intoxicated drivers from starting cars. Over ten thousand people were killed in drunk driving-related crashes in 2017, with the costs to society nearing $200b.
Tesla has received approval from China to start producing vehicles in the country. Tesla is in the process of building a $2b factory in Shanghai.
A new survey by the Society of Motor Manufacturers and Traders (SMMT) shows that one in three car firms are cutting jobs. One in eight has divested from their UK businesses as a result of Brexit.
Automotive Logistics has an analysis of Dyson's exit from the EV market.