Elm Analytics - Automotive Supply Chain Risk Digest #199 - November 27 - December 3, 2020
CHANGE IN MANAGEMENT
Audi of America has named former Toyota exec Sara Whiffen as its new head of strategy. Whiffen will start immediately in the role.
Ford is imploring other automakers to back a framework emissions deal with California to reach industry consensus before Joe Biden takes office. Ford struck a voluntary agreement with the state in July 2019 along with Honda, VW, and BMW.
In South Korea, GM workers have rejected a preliminary labor deal that would have given each worker a lump sum payment of $3,615 in early 2021. Wages there have been frozen since 2018 when the automaker received state aid to keep operations running.
The National Highway Traffic Safety Administration has ordered Hyundai and Kia to pay a $137M fine over faulty engines they say the automakers moved too slowly to recall.
MERGERS, VENTURES, ACQUISITIONS
While GM will supply hydrogen fuel cell tech to Nikola, it has withdrawn its plan for an equity stake and strategic partnership.
BMW is teaming with Siemens, SAP, and Bosch to build a new cloud-based data exchange platform. The platform will help German automakers and their suppliers to identify production bottlenecks or parts shortages.
Vibracoustic AG will close its Ligonier, Indiana manufacturing plant affecting 85 employees. The German-based company has four remaining US plants and has recently expanded production in China.
Schaeffler is cutting 4.4k jobs across a dozen facilities in Germany and two sites elsewhere in Europe. The cuts will result in the closure or sale of plants in Wuppertal, Eltmann, and Clasthal-Zellerfeld.
Spain's Gestamp will expand its two plants in Chattanooga, Tennessee. The facilities provide structural stampings and welded assemblies to support VW's nearby planned EV assembly.
Tesla is planning to build a $6.4M EV charger plant in China. The plant will be completed by February 2021 and produce 10k chargers per year.
EV startup Lucid Motors has finished construction of its Casa Grande, Arizona plant. The plant is the first purpose-built EV factory in North America and has the capacity to build 30k vehicles per year.
Hyundai Transys is building a $240M transmission plant in West Point, Georgia. The 620k sq ft plant will employ 678 workers.
Ford will reportedly produce a new EV in 2023 based on VW's MEB platform at its plant in Cologne, Germany.
Marelli will begin production of EV drivetrains in a former Ford plant in Cologne, Germany. The 194k sq ft facility will open in the first half of 2021.
Renault Samsung will halt operations at its plant in Busan, South Korea, for four days next month due to a decline in sales due to Covid-19. It will also continue its suspension of overnight operations that started on November 10.
Sources say that LG Chem will more than double its EV battery production in China next year to meet demand from Tesla.
The EU is planning to impose stricter environmental requirements for EV batteries that will require manufacturers to source raw materials, use clean energy in production, cut the share of hazardous substances, and boost energy efficiency and durability.
Have you booked a fleet of Antonov cargo jets yet? Bentley has five of them on standby to transport vehicle bodies and engines if time runs out on a Brexit deal.