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Elm Analytics - Automotive Supply Chain Risk Digest #204 - January 1 - 7, 2021
South Korea's bankrupt Ssangyong has until Feb 28, 2021, to finish repaying a $275m loan from Mahindra. Mahindra abandoned its pledge to provide an additional $210m in funding last year.
CHANGE IN MANAGEMENT
VW has named longtime German public utility exec Elke Temme as the head of its new division for EV charging.
In 2020, new car sales in Britain slumped to their lowest levels since 1992. Sales were 29% lower in 2020 than in 2019, making it the most significant annual drop since 1943.
Automakers are racing to shut, switch, or sell factories that produce combustion engines to avoid "stranded assets."
Automakers continue to use vehicle data to improve the risk pricing of offering auto insurance. Ford and GM launched programs in 2020, joining Tesla's insurance program launched in 2019.
Michelin is aiming to produce all of their tires with 80% sustainable materials by 2048. Michelin North America chairman Alex Garcin added that "We don't know today how to get completely to 100 percent".
Google's autonomous vehicle arm Waymo says it will stop using the term "self-driving" and instead use "autonomous" to describe its vehicles. They say the change is "...an important one because precision in language matters and could save lives".
Daimler has agreed to pay a $30M civil penalty to resolve an NHTSA investigation into delayed recalls. The agency opened a probe into the around 446k affected vehicles back in April 2018.
Lanxess declared force majeure for PA 6-based compounds and film material from Uerdingen due to a defective reactor. PA 6 nylon is often used to replace metal in automotive parts.
MERGERS, VENTURES, ACQUISITIONS
Shareholders approved the merger between FCA and PSA Groupe earlier this week. The automakers will join forces on Jan 16 to form Stellantis.
Ford and Mahindra have broken off talks to create a low-cost vehicle joint venture. Both companies cited pandemic fueled changes in the global economy to reassess the project.
Magna International will work with EV startup Fisker Automotive to develop an advanced driver assistance system for use in the automaker's upcoming Ocean SUV (2022). The system will use digital imaging radar tech as well as cameras and ultrasonic sensors.
Foxconn will invest $200m as Hon Hai Precision Industry in a manufacturing deal with EV startup Byton. Analysts view the agreement as a lifeline for Byton, which has struggled to produce its M-Byte car.
Hyundai halted production at its Ulsan, South Korea plant this week after a worker died in an accident. It is unclear when work might resume.
FCA will expand its manufacturing facility in Ranjangaon, India, to support the Jeep Compass and Grand Cherokee launch.
Turkey's TEKLAS will open a 200k sq ft factory in Calhoun, Georgia. The EV supplier produces rubber hoses and plastic tubes for GM, VW, and Daimler Mercedes.
Nissan is increasing production at its car plant in India to meet the demand for its Magnite SUV. The automaker will hire 1,000 workers and increase production by 1,300 cars per month.
Massachusetts will ban the sale of new internal combustion engine vehicles by 2035. The state has a goal of net-zero fossil fuel emissions by 2050.
Supply Chain Quarterly: Supply chain resiliency starts with supplier mapping
COVID-19 has been found on multiple automotive tire packaging samples in China.