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Elm Analytics - Automotive Supply Chain Risk Digest #192 - October 9 - 15, 2020
Krieger Craftsmen Inc has filed for Chapter 11 bankruptcy. The Walker, Michigan manufacturer produces automotive plastic injection molds.
Jaguar Land Rover called back around 85% of the over 20k workers it furloughed in the UK due to an uptick in demand in most of its markets.
Automotive suppliers are having a hard time finding enough workers to fill openings. Job perks such as adding onsite teachers for virtual school and increasing wages are a few ways companies are working to prevent overtime burnout.
The Center for Automotive Research examines the role Japanese Automakers have taken in the US recovery.
Automotive News: Suppliers' debt can be fatal in COVID-19 crunch
Unifor and FCA reached a tentative three-year labor agreement late this week that would see the automaker commit to investing $1.2b into its Canadian facilities. The deal would also see new product allocations that will create more than 2.1k jobs.
Another major Takata recall centered on safety belts may be surfacing. Joyson Safety Systems, which purchased Takata's assets out of bankruptcy two years ago, is looking into data inaccuracies related to its safety belt webbing.
The California Air Resources Board released a letter this week urging automakers and engine manufacturers to disclose any unapproved hardware or software that could compromise a vehicle's emissions by the end of the year. The letter noted that "voluntary disclosure will trigger a reduction in penalties; failure to do so may affect the result of future enforcement actions."
MERGERS, VENTURES, ACQUISITIONS
Audi and FAW are planning a new JV to make EVs in China. Audi plans to roll out more than nine EVs in China by 2021 and said that the E-tron crossover would be built at the FAW-Volkswagen plant in Changchun.
Germany's Mutares is acquiring the Engineering Services Business Line from Finland's Valmet Automotive.
Fisker has outsourced the production of its Ocean EV to Magna. Magna has taken a 6% equity stake in the company and will build the crossover on its EV platform at its plant in Austria.
France is investigating options to keep Bridgestone's Bethune tire plant open.
A Magna Seating worker was killed in an onsite accident in Moore, South Carolina.
Mercedes-Benz is expanding its plant in Vance, Alabama. The company is investing $54m to add a 500k sq ft EV parts sequencing facility and expects to be complete in 2022.
Bridgewater Interiors is investing $10m into expanding its plant in Eastaboga, Alabama.
Germany's dk Beteiligungsgesellschaft is building a factory in Priboj, Serbia. Its subsidiary Fluid Technology Systems, will employ 400 people.
Hyundai is investing $440m into an innovation center in Singapore that could produce up to 30k EVs per year by 2025. The seven-story facility is expected to be completed by 2022.
GM shut down Corvette production this week at its plant in Bowling Green, Ohio, for the second time due to coronavirus-related impacts. A spokesperson said it was due to a "temporary parts supply issue."
Ford uses a new type of steel in its 2021 Ford Bronco that is stronger than the steel it previously used and reduces the weight of the vehicle by 10%.
How will each US presidential candidate's policies impact the auto industry?
France is drafting a law that would double the carbon emissions penalty tax for buyers of luxury gas-guzzling cars. The tax would go up to $59k by 2022 and be capped at half the vehicle's cost.
A new study from the International Association of Fire Chiefs and the National Volunteer Fire Council found that 50% of US fire departments have no protocols to fight fires caused by malfunctions in electric vehicles.