Elm Analytics - Automotive Supply Chain Risk Digest #155 - January 24 - 30, 2020
CHANGE IN MANAGEMENT
Renault has named Luca de Meo, the former head of VW's Seat brand, as its new CEO. De Meo will replace Renault's interim CEO Clotilde Delbos.
Jaguar Land Rover CEO Ralf Speth, who has led the automaker since 2010, is retiring from his position in September. JLR's parent company Tata has formed a committee to find Speth's successor.
Tesla has reported a loss of $775m in 2019, a 27% improvement over 2018.
Around 3.9k employees at FCA's assembly plant in Belvidere, Illinois, have been offered separation packages that include a $60k retirement incentive. The other option is a voluntary termination, which provides a lump sum payment.
GM President Mark Reuss claims that the automaker's upcoming BEV3, or third-generation battery-electric vehicle, will "...reach a 90% charge in just 10 minutes."
Ford has reached a settlement in a class-action lawsuit regarding allegedly faulty transmissions found in the 2011-2016 Fiesta and 2012-2016 Focus. Ford has guaranteed a $30m fund to reimburse owners who've received multiple failed transmission repairs within five years or 60k miles of owning their Focus or Fiesta.
As of this week, Lebanon and Japan have about 40 days to decide whether ex-Nissan head Carlos Ghosn will be extradited to Japan or stand trial in Lebanon. Japan and Lebanon have no extradition agreement, and Lebanon does not typically hand over its nationals.
Mitsubishi has denied claims from German investigators that they used illegal emissions defeating devices in their diesel vehicles. In a statement, the automaker said that none of their engines were equipped with "defeat devices" and added that PSA Group made the 1.6L engines under investigation.
MERGERS, VENTURES, ACQUISITIONS
Borgwarner is acquiring Delphi Technologies for around $3.3B in an all-stock deal. Current Borgwarner President and CEO Frederic Lissaide will lead the newly merged company, with its headquarters at Borgwarner's Auburn Hills, Michigan location.
The Coronavirus has now spread to every part of mainland China. The virus is now in at least 20 countries, and experts say they believe the outbreak's peak is still months away.
Gill Industries is closing its plant in Grand Rapids, Michigan, by April 10. The company says that of the 59 employees affected; some may be offered jobs at its plant north of Grand Rapids.
PSA subsidiary Opel is planning to build a new battery cell factory in Kaiserslautern, Germany. The "true giga factory" will lead to the creation of 2k jobs.
President Trump made a claim late last week that Tesla will "be building a very big plant in the United States." Car and Driver reached out to Tesla for comment but have yet to hear back.
FCA will shut down the Jeep Cherokee assembly plant in Belvidere, Illinois. Slower sales will idle the facility for two weeks in February and one week in August.
Toyota South Africa will invest around $290m into the production of a new vehicle at its plant in KwaZulu-Natal and the opening of a new packing plant. The automaker says the investment will inject $193m/year into South Africa's economy and create around 1.5k new jobs.
Prices of lithium have fallen 50% over the past 18 months. Even with a substantial 16% share of the global market, China's Tianqi Lithium is suffering from skyrocketing debt and inventory glut.
Automotive News: Automakers, suppliers scale back, issue profit warnings as coronavirus spreads
A new report from the center-left think tank Business Forward Foundation says that climate change is posing a severe risk of disruption to Ohio's auto suppliers, farms, manufacturers, and other businesses.
Construction on a $12M, state-of-the-art automotive shipping port, has begun in Camperdown, South Africa. The first phase of development will be an undercover storage facility that can accommodate 2.4k vehicles, while the second phase will provide capacity for an additional 2.3k.