Elm Analytics - Automotive Supply Chain Risk Digest #161 - March 6 - 12, 2020
CHANGE IN MANAGEMENT
Honda has picked its Canadian CEO, Dave Gardner, as the new head of American Honda Motor Co. in the U.S. Gardner will replace Henio Arcangeli, Jr., who left the automaker last month in a dispute over his future role at the automaker.
PSA is cutting the workweek at its Vauxhall plant in Ellesmere Port, England, from five days down to four. The automaker says the plant would operate "extended hours" on those four days, but did not rule out layoffs.
VW's Seat plant is working with its unions on a plan to send staff home if Italian supply chain disruptions affect production. The 4.8k workers, in Spain's Navarra region, produce the Polo and T-Cross.
Their suppliers, impacted by the coronavirus, have already canceled one production shift on March 14th.
A jury in California has awarded four Volkswagen drivers $100k in punitive damages for being sold diesel vehicles that emitted excess pollution. The automaker will appeal to have the figure reduced.
MERGERS, VENTURES, ACQUISITIONS
Wolong ZF Automotive E-Motors Co, a new joint venture between ZF and Wolong Electric Group, will begin production in Shenyang, China, next year.
The government allowed a limited number of employees in key industries to return to work in Hubei, China. Honda has resumed manufacturing of its CR-V SUV at its production facility in Wuhan. Nissan has indicated that it will restart production at its plant in Hubei as well as its Zhengzhou site.
Dongfeng Honda Automobile, Dongfeng Motors, and its suppliers in Wuhan, China, also received government approval to resume manufacturing.
However, most factories in Hubei, China won't be allowed to resume operation until March 20th. The government has pushed back the restart date again.
FCA will temporarily close its Italian plants in Pomigliano d'Arco, Melfi, Atessa, and Cassino. It is conducting intensive sanitation of work and rest areas to prevent the spread of the coronavirus. The company is also adjusting processes and production rates to allow greater employee spacing. Production is scheduled to restart on Monday.
Lamborghini has temporarily closed its plant in Bologna, Italy, until March 25th due to Italy's coronavirus outbreak.
FCA supplier MTA Advanced Automotive Solutions has restarted production in Italy after a one-week shutdown due to coronavirus. While production has restarted, capacity is limited.
Pirelli will drop production at its tire plant in Settimo Torinese, Italy. The site will be sanitized after an employee tested positive for COVID-19.
The world's second-largest platinum producer, Amplats, declared force majeure. An explosion shut down the Anglo Converter Plant processing facilities in South Africa.
The China Association of Automobile Manufacturers (CAAM) is looking for regulatory help after the worst ever monthly sales decline. Automakers are requesting government vehicle tax cuts and easing of emissions requirements.
The Netherlands will offer up to $4.4k in subsidies for electric vehicle purchases.
IndustryWeek: How Can Lean Help in a Crisis?
A worker tested positive for COVID-19 at FCA's Indiana transmission plant.
Nissan has shifted to flying parts into its plants in Aguascalientes, Mexico. The head of the Aguascalientes automotive cluster indicated they might only have inventory for the next three weeks unless the supply from China normalizes.