Elm Analytics - Automotive Supply Chain Risk Digest #305 - December 9 - 15, 2022
CHANGE IN MANAGEMENT
Volkswagen has named Audi exec Michael Neumayer and Porsche exec Michael Mauer as their new head of quality management and design chief, respectively. In addition, they will both retain their roles at Audi and Porsche.
Forvia is closing its plant in Highland Park, Michigan, by January 31, 2023. The closure will affect 268 employees.
An argument over tools at Forvia's Highland Park, Michigan, plant ended in a shooting with one worker dead. Police say the altercation is not related to layoffs announced this week.
Fuyao Glass is planning a $300M expansion at its plant in Moraine, Ohio, to produce EV parts. The expansion will create 500 jobs and be fully operational by January 2025.
Lear is planning a $112.5M expansion at three facilities in southeast Michigan to support its push into the EV market. The investment will see a new plant built in Independence Township and expansions at plants in Traverse City and Macomb County.
From 2024, Mercedes will invest $1B to update its global production network to produce electric powertrains.
Italy's Brembo will double the size of its brake factory in Nuevo Leon, Mexico.
Workers at GM and LG's JV Ultium Cells plant in Warren, Ohio, have voted to unionize. 98% of the votes cast were in favor of joining the UAW.
Striking workers at Autoneum's Bloomsburg, Pennsylvania, insulation plant have reached an agreement. The weeklong strike centered around rising healthcare costs. Its customers' operations had reportedly not been impacted.
MERGERS, VENTURES, ACQUISITIONS
The US Energy Dept. this week finalized a $2.5B low-cost loan to GM and LG's Ultium Cells JV to help pay for three new EV battery plants. The new plants will be built in Ohio, Tennessee, and Michigan.
Rivian has halted its joint venture with Mercedes Benz to develop EV delivery vans in Poland. While Mercedes Benz will move forward with building its plant in Poland, Rivian will likely stay focused on increasing the production of its consumer vehicles and fulfilling its commercial contract with Amazon.
Ford and China's CATL are reportedly considering a new lithium iron phosphate battery facility in Michigan or Virginia. To take advantage of IRA tax credits, Ford would own 100% of the facility, and CATL would operate the plant and own the cell technology.
Indian automaker Mahindra and Mahindra will invest $1.2B into a new EV plant in Pune, India.
Tesla is reportedly finalizing plans for a new factory near Santa Catarina, Nuevo León, Mexico.
Redwood plans to open an EV battery recycling facility in Charleston, South Carolina. When fully operational, the campus will produce 100 GWh of cathode and anode components per year.
Ford is adding a third shift at its F-150 Lightning EV plant in Detroit. The company is targeting 150k pickups annually by the fall of 2023.
A startup company is making faux leather from an unlikely material: mushrooms.
Stellantis recalled 1.4M trucks due to tailgates that can open unexpectedly. The recall covers Ram 1500, 2500, and 3500 pickups from 2019-2022.
GM recalled 825k SUVs and cars in the US and Canada due to daytime running lights that may not turn off when the headlights are on. The issue will be fixed by a software update performed online or at a dealership.
Stellantis is idling its plant in Belvidere, Illinois, next February due to "the increasing cost related to the electrification of the automotive market." The shutdown is expected to last more than six months and will see the indefinite layoffs of 1.3k employees.