Elm Analytics - Automotive Supply Chain Risk Digest #264 - February 25 - March 3, 2022
CHANGE IN MANAGEMENT
Ford is restructuring as part of its Ford+ program launched in May 2021. New distinct divisions were announced this week along with leadership appointments:
Ford Motor Company
Jim Farley - President and CEO
John Lawler - Chief Financial Officer
Stuart Rowley - Chief Transformation & Quality Officer
Hau Thai-Tang - Chief Industrial Platform Officer
Ford Model e (EV division)
Lisa Drake - Vice President, EV Industrialization
Jim Farley - President
Doug Field - Chief EV and Digital Systems Officer
Marin Gjaja - Chief Customer Officer
Darren Palmer - Vice President, Electric Vehicle Programs
Ford Blue (ICE & Hybrid division)
Kumar Galhotra - President
Ford Pro (Commercial & Government)
Ted Cannis - CEO
Joy Falotico - President
Anning Chen - President and CEO
Ford Drive (Formerly Ford Smart Mobility)
Marion Harris - President and CEO
British vehicle output in January fell by 20% compared to January 2021. It is their worst January since 2009.
BMW is investing $200M into expanding its operations in Spartanburg, South Carolina, with a new press shop. The new shop will create 200 jobs.
Marketplace: Sectors that rely on Ukrainian industry slow down
Volvo announced it is stopping vehicles sales in Russia due to EU and US sanctions. Russian sales account for 1% of Volvo's total in 2021. To watch: China's President Xi Jinping is one of the few world leaders that hasn't distanced themselves, and a Chinese conglomerate owns Volvo.
Hyundai plans to invest $16.15B into electrification of its vehicle lineup by 2030. The automaker aims to sell 1.87M EVs and launch 17 new models.
Customers have filed a class-action suit against Hyundai and Kia, claiming that a defective anti-lock brake system can start fires. Despite the automaker recalling the cars early last month, the lawsuit alleges that the fix is "only a Band-Aid."
NHK reports that Panasonic is looking for land for a massive battery factory in Oklahoma or Kansas. Sources say Panasonic will build a new type of battery for Tesla EVs.
Chinese battery maker Sunwoda will invest nearly $1.9B into a new EV battery plant in Zhuhai, China. The plant will have a capacity of 30GWh/year.
Due to a Ukrainian supply disruption, Mercedes-Benz will drop production at some plants next week. The automaker added that it is working with suppliers to find alternate sources for parts made in Ukraine.
Audi also announced it is cutting production due to the lack of wire harnesses from Ukraine. Its Ingolstadt and Neckarsulm plants in Germany will shut down starting March 7.
Sixteen US states and ethanol producers have filed a petition challenging the stricter vehicle emission regulations of the EPA. They say the rules, which take effect in 2023, "effectively mandate the production and sale of electric cars rather than cars powered by internal combustion engines."
Two of VW's plants in Germany shut down this week due to parts disruptions related to the crisis in Ukraine. The company could no longer receive wiring harnesses from its Ukrainian supplier. Its Zwickau plant was offline starting March 1, and its Dresden facility shut down on March 2. Of note: the Zwickau plant had been building 1.2k ID.4 EVs per day.
BMW closed its Russian assembly plant - a JV with Avtotor.
Ford suspended their operations in Russia this week due to a reaction to the country's invasion of Ukraine. The automaker added that they are "deeply concerned about the situation in Ukraine."
Porsche suspended production at its Leipzig plant for at least a week.
Magna is halting operations at its six plants in Russia due to the invasion of Ukraine.
Toyota halted production across 14 of its Japanese plants for one day last week after their supplier Kojima Industries suffered a cyberattack.
This week, Ford halted F-150 production at its Kansas City, Missouri plant due to the global semiconductor shortage.
Canada's auto suppliers are pushing back on Stellantis' new purchasing terms that place all risk on the suppliers themselves. The updated purchase order terms took effect for new contracts on January 1.
A cargo ship carrying around 4,000 VW vehicles caught fire and sank into the ocean this week. The boat was about 220 nautical miles off Portugal's Azores Islands coast.