CHANGE IN MANAGEMENT

This week, Ford announced that current COO Jim Farley would take over as its new CEO, replacing Jim Hackett, who is retiring. Farley will assume his new role on October 1.

EARNING DIP

FCA reported a $1.24B loss for the second quarter of 2020. It did report a profit of $46.2M for its operations in North America, but all other markets were in the red.

Honda reported a $1B operating loss for the first quarter of 2020 as coronavirus broadsided its US market. Last year, Honda gained a $2.35B operating profit for the same quarter.

HUMAN CAPITAL

According to a memo sent to UAW members, 32 new cases of COVID-19 have been reported at Ford's truck plant in Louisville, Kentucky. Despite the new cases, the automaker says that their new safety protocols are working.

Following 30 hours straight of negotiations, Nissan and the unions at its three plants in Barcelona, Spain, have agreed to postpone the closure of the plants by one year to December 2021. Workers have been on strike since early May, a few weeks before the automaker announced the closures.

INDUSTRY DIRECTIONS

As of sometime in May 2020, the number of EV charging stations worldwide has topped 1M. The number of chargers has doubled in just three years.

LABOR DISPUTE

Canadian auto union Unifor says they have "huge problems right through the system" to solve during this year's round of labor talks with the Big 3. Unifor President Jerry Dias: "If we don't find solutions in Brampton, we have a problem. If we don't find solutions in Windsor or Oakville, we have a problem."

LITIGATION

GM is asking the federal judge that dismissed its racketeering lawsuit against FCA to reinstate the suit, claiming it has new evidence. The automaker says it has "reliable information concerning the existence of foreign bank accounts" used by FCA in the alleged scheme.

Honda will recall over 1.6M SUVs and minivans in the US over problems with backup camera displays, malfunctioning dashboard lights, and faulty sliding door latches. The recall covers certain Odyssey minivans from 2018-2020, Pilot SUVs from 2019-2021, and Passport SUVs from 2019-2020.

FCA will likely recall 1M vehicles in the US that may be creating excess pollution. The automaker is still working to identify the affected vehicles and develop a repair.

Michigan-based automaker VLF Automotive has accused Chinese EV-maker Karma Automotive of stealing its plans to produce a "luxury Humvee" for the Chinese market. VLF claims it shared ideas with Karma last fall as part of a proposed partnership that did not materialize.

MERGERS, VENTURES, ACQUISITIONS

GM is partnering with EV fast charger maker EVgo to build 2.7k new charging stations across the US over the next five years. The stations will offer Level 3 charging, which can usually refill an EV's near-empty battery to 80% in 30 minutes.

Italy's Brembo has upped its stake in Pirelli to nearly 5%. The brake supplier and tire manufacturer have both positioned themselves to serve a premium market segment.

Lordstown Motors will merge with DiamondPeak Holdings, resulting in Lordstown being publicly listed.

Mercedes-Benz aims to shorten development cycles by expanding its partnership with the Chinese battery cell manufacturer, CATL.

CLOSING

Germany's MANN+HUMMEL will end production at its Ludwigsburg plant. The facility produced fuel, oil, and air filtration systems. The company's headquarters, R&D, and technology centers will remain in Ludwigsburg.

OPENING

Denso recently established a new autonomous driving R&D center in Pittsburgh, Pennsylvania.

REGULATION

The Trump administration is re-imposing a 10% tariff on aluminum imports from Canada, just one month after the USMCA went into effect.

Italy is expected to announce a $29.32B stimulus package this month that will include assistance for the auto industry. Just under $1B will reportedly be allocated to strengthen current incentives for buying state-of-the-art combustion engine cars as well as EVs and hybrid vehicles.

The UK has launched a $1.3B Automotive Transformation Fund to support its long-term supply chain through innovation.

RISK ANALYTICS

NOAA has updated its 2020 Atlantic storm outlook. It warns of "19-25 named storms (winds of 39 mph or greater), of which 7-11 will become hurricanes (winds of 74 mph or greater), including 3-6 major hurricanes (winds of 111 mph or greater)."