Elm Analytics - Automotive Supply Chain Risk Digest #222 - May 7 - 13, 2021
CHANGE IN MANAGEMENT
Waymo CFO Ger Dwyer is departing one month after the exit of former CEO John Krafcik. Adam Frost, the head of automotive partnerships, is also leaving.
Subaru's operating profit for 2020 tumbled by around 50% compared to 2019 from $1.91B to $930.2M.
Daimler's CEO, Ola Källenius, warned, "we have to have an honest conversation about jobs" affected by the electrification shift. Last month the EU accelerated emissions targets, signaling a faster transition to zero-emissions vehicles. An electric powertrain requires less labor than combustion-based and could cost the industry 100k jobs by 2025.
ENEOS has partnered with Toyota to test the feasibility of a hydrogen-based supply chain. The development will center around Toyota's experimental 175-acre Woven City.
Former UAW President Dennis Williams has been sentenced to 21 months in prison for his role in the UAW/FCA corruption scandal.
The US National Highway Traffic Safety Administration has opened a safety probe into over 1M Honda Accords over reports of a sudden loss of steering control. The investigation covers models made from 2013-2015.
Ford recalled 661k Explorers in North America due to retention pins that can loosen and allow roof rail covers to become detached.
MERGERS, VENTURES, ACQUISITIONS
Canadian supplier Martinrea is launching a new JV with graphene producer NanoXplore to make new EV batteries with graphene. The JV will invest $8M towards a demonstration facility, with plans for a 10GWh battery plant later.
Marelli and PUNCH have formed a joint venture to develop e-axles for EVs.
Ford, thyssenkrupp, RWTH University Aachen, and Engiro formed a consortium to research efficient production processes for e-motors on a single production line. The project centers around the hairpin technology used in the wire‑winding inside the e-motor assemblies.
American Axle is teaming up with Israel's Ree Automotive to develop an electric propulsion system. The system will incorporate American Axle's drive units into Ree's technology that integrates all standard chassis components into the wheel's arch.
Xinquan México Automotive Trim began the construction of a new plant in Aguascalientes, Mexico. The 27k sq m complex will produce interior parts.
Canadian EV maker Lion Electric Company has announced plans for a new $70M assembly plant in Joliet, Illinois. The plant, expected to start production in 2022, will have an annual capacity of 20k vehicles and create at least 745 jobs.
Group14 Technologies is building a new 27k sq ft R&D / manufacturing facility in Woodinville, Washington. The site will have the capacity to produce 120 tons of lithium-silicon anode materials.
Stellantis is extending the shutdown at its Windsor minivan plant for another week (week of May 17) due to the ongoing semiconductor shortage. The plant has been idle since late March.
Bosch is suspending operations at its plant in Nashik, India, until May 23 due to COVID-related restrictions. The shutdown will marginally affect the plant's OEM customers.
Maruti Suzuki India extended a planned shutdown until May 16 due to the COVID-19 pandemic.
Tesla has paused plans to expand its Shanghai plant and will limit overall production in China. Reports cite uncertain US/China relations and 25% US tariffs. Tesla currently ships Chinese-made Model 3 vehicles to Europe.
South Korea will expand investment and tax incentives for the semiconductor industry to cope with automotive chip shortages.