Elm Analytics - Automotive Supply Chain Risk Digest #188 - September 11 - 17, 2020
The Wall Street Journal reports that Garrett Motion is preparing for a possible bankruptcy filing. The 2018 spinoff from Honeywell has it burdened with asbestos-related injury claims. The company produces turbocharging systems.
CHANGE IN MANAGEMENT
Porsche has named its top global marketing exec Kjell Gruner as the new CEO of Porsche Cars North America, effective Nov. 1. Gruner will replace Klaus Zellmer, who is now chief sales officer at Volkswagen.
Engine component and electronics maker Mahle is planning to reduce its workforce by 7.6k as part of its restructuring in response to COVID-19. While around 3.7k jobs are at risk in Europe, it wasn't immediately clear how many are at risk in North America.
Following the dismissal of its federal racketeering case, GM has filed a new state lawsuit against FCA, alleging that some of its officials committed bribery and conspiracy that hurt GM.
Hyundai and Kia recalled over 180k vehicles in the US over antilock brake system issues that could cause a fire. The recall covers 180k 2019-21 Hyundai Tucson and about 9.4k 2019 Kia Stinger models.
MERGERS, VENTURES, ACQUISITIONS
India's Mahindra & Mahindra plans to sell its stake in South Korea's SsangYong To US-Based HAAH Automotive. The acquisition may save the ailing manufacturer from bankruptcy.
Analysts believe that the acquisition of Arm by NVIDIA may change the field for autonomous driving.
BMW vehicles will incorporate new technology from Israel's Tactile Mobility in 2021 to analyze road surface attributes under the tires to detect road conditions.
Hella has acquired plastics component maker FWB Kunststofftechnik. Although Hella made the purchase to secure its supply chain, FWB will remain independent.
ZF TRW is permanently closing its plant in Atkins, Virginia, by the end of 2022. Its sister plant in Rogersville, Tennessee, will close at the end of 2021.
Continental will close its tire plant in Aachen, Germany, by the end of 2021. The closure will bring the loss of 1.8k jobs.
Bridgestone is closing its plant in Bethune, France, as early as the second quarter of 2021. The closure could affect 863 jobs.
A fire broke out at Unimicron Technology in Kunshan, Jiangsu, China, and may halt production for up to four weeks. The printed circuit board factory supports 50 of Robert Bosch's products. Bosch "initiated an emergency response to coordinate parts supplies globally."
Ford has broken ground on a new plant outside of Dearborn, Michigan, where they will build an EV version of its popular F-150 pickup truck. The $700M plant will start production in mid-2022.
Denmark-based Hyundai supplier Mountain Top Industries will open a new 73k sf facility in Montgomery, Alabama, next year. The new facility will create at least 90 jobs and produce aluminum roll covers for pickups.
China's BMW Brilliance Automotive has doubled its production capacity for EV batteries through its plant expansion in Tiexi, China. The plant will immediately begin producing the new and more powerful batteries for the fifth-generation BMW eDrive platform.
The UK has agreed to a new trade deal with Japan to reduce tariffs on Japanese cars in stages to zero by 2026. The tariff deal is the same as the current Japan-EU trade agreement covering Britain until the end of December.
Stricter EU proposed CO2 emission targets have automakers concerned. Electric vehicles will need a dramatically expanded infrastructure to meet more stringent levels.