Elm Analytics - Automotive Supply Chain Risk Digest #300 - November 4 - 10, 2022
Angstrom Automotive Group and CBT Enterprises have split portions of Gissing. In August, Gissing, who made interior acoustic and cargo management systems, filed for Chapter 11. Michigan's Angstrom is buying the Sidney, Ohio, and Auburn, Maine plants. At the same time, CBT will buy the Sumter plant in its home state of South Carolina. The remaining plants were not auctioned off.
CHANGE IN MANAGEMENT
Aston Martin has named Tony Joseph the new president of its Americas region. He is a past president of McLaren NA and takes over for Adam Chamberlain, who departs this month.
Stellantis is expanding its Kenitra, Morocco plant, which will double its capacity to 400k.
Michigan Automotive Compressor is expanding its Parma, Michigan facility that supplies Toyota.
Germany's Schaeffler will cut 1.3k jobs, nearly 2% of its global headcount, in response to the EV shift.
Mazda is pushing back its plans for a second shift at its new plant in Huntsville, Alabama. Production of the CX-50 has suffered due to worker retention and a tight labor market.
VW and Porsche have settled a class-action lawsuit for $80M dealing with inaccurate emissions and fuel economy.
German prosecutors are investigating an August cyberattack at Continental resulting in stolen data.
MERGERS, VENTURES, ACQUISITIONS
Foxconn is increasing its stake in Lordstown Motors to nearly 20%.
Russia's Sollers will buy Mazda out of their 50/50 joint venture in Vladivostok. Earlier this year, Mazda indicated it would stop supplying parts and halt production in response to Russia's invasion of Ukraine.
Joon Georgia, a subsidiary of Ajin USA, will build a new assembly plant in Bryan County, Georgia. The facility will produce body parts and electronics for Hyundai's new EV plant, launching in 2024.
Nissan has dropped production expectations through the end of the year. Ongoing chip shortages have caused supply chain disruptions affecting 11k vehicles.
VW and Audi have recalled 224k vehicles with potentially failing tire pressure monitoring systems.
Tesla recalled 40k Model X and S vehicles due to a potential loss of power steering assist on rough roads.
The EU has released stringent emissions rules for "Euro-7" ICE vehicles. The standards aim to reduce nitrous oxide particulates but have had a less than warm reception from automakers and lobbyists.
The Inflation Reduction Act (IRA) will likely survive any drastic changes brought on by the midterm elections. Bloomberg points out that the IRA is "this is an industrial policy first, and a climate policy second."
Analysts are pointing to three years of EV raw materials shortages as the US ramps up investments related to the US IRA and Infrastructure Investment and Jobs Act.
Foley & Lardner outline key supply chain terms and conditions that buyers and suppliers should include in contracts.