Discover more from Automotive Supply Chain Risk Digest
Elm Analytics - Automotive Supply Chain Risk Digest #186 - August 28 - September 3, 2020
Shiloh Industries has filed for Chapter 11 bankruptcy. The Ohio based supplier produces vibration, noise, and lightweighting products. Operations in Asia, Europe, and Mexico expect to remain operational.
Continental will cut its workforce by 13% to reduce costs by $1.2B / year. Its expansive restructuring effort could affect 30k jobs by 2025.
Ford will eliminate 1.4k North American positions. The move is part of an ongoing $11B restructuring effort.
BMW will cut nearly half of its agency personnel at its Mini plant in Oxford, United Kingdom, due to a "substantial" fall in customer demand.
Electrical capacitor supplier AVX is laying off 77 workers at its plant in Coleraine, Northern Ireland.
Members of the Canadian auto union Unifor have authorized a labor strike at GM, Ford, and FCA. The union's three bargaining committees will decide if a strike is necessary as negotiations move forward, with a strike deadline of Sep. 21 at 11:59 pm.
Hyundai and Kia have recalled over 591k vehicles in the US over a brake fluid leak that could start a fire. The recall covers over 440k Kia Optimas and Kia Sorentos from 2013-2015 and 2014-2015, respectively, and 151k Hyundai Santa Fe SUVs from 2013-2015.
MERGERS, VENTURES, ACQUISITIONS
GM and Honda are looking to form a North American alliance. The move would establish purchasing collaboration, R&D, and a shared range of vehicles.
Veoneer announced a partnership with Qualcomm on AV technologies. The alliance is notable as it targets Intel / Mobileye and leaves a previous AV relationship with Nvidia.
Germany's Hella is reportedly planning on selling its driver-assistance software unit.
Magna will acquire majority ownership in its joint venture with Chinese seating supplier Honglizhixin.
Allegro Micro Systems has purchased Voxtel, which develops lidar technologies. Allegro plans to bolster its automotive lidar systems.
Hyundai Mobis is building an EV part plant in Pyeongtaek, Gyeonggi-do, Korea. The new plant is the third since 2013 and will produce power electronics modules.
India's SMP Automotive will open a plant in Cuprija, Serbia. The facility will produce interior and exterior modules.
The NHTSA is granting automakers a six-month extension to meet "quiet car" regulations that require EVs and hybrids to emit alert sounds that warn pedestrians of their approach. They are also seeking public comment on whether to extend the deadline by a full year.
An appeals court has overturned a July 2019 Trump administration rule that suspended Obama-era regulation that doubled fines for automakers that fail to meet fuel-efficiency standards. The ruling states that the NHTSA didn't make a "timely" decision to suspend the penalties.
As of Tuesday, the European Union now can directly recall vehicles that breach EU emissions limits. They can also issue fines of up to 30,000 euros per car for automakers that don't comply and potentially revoke their certification for roadworthiness.
Carla Bailo, president and CEO of the Center for Automotive Research: "Everyone is predicting this year about 13 million (vehicles sold), pre-COVID we were about 17 million. We expect it's going to take another two years, but that's predicated on a good recovery and continued recovery throughout this year."