Elm Analytics - Supply Chain Risk Digest #1 - February 13-18, 2017
CHANGE IN MANAGEMENT
Bradley Norton named co-CEO of Federal-Mogul as billionaire investor Carl Icahn takes full ownership in a $300M deal. Rainer Jueckstock remains as other co-CEO.
Restoring jobs at Canadian GM plant key to new contract, union says.
Strikes scheduled for Spanish ports called off. Spanish trade unions planned strikes for Feb 20, 22, 24 in response to government reform plans.
Chinese tire companies back to court in Toyo's $29M sanctions bid in intellectual property suit.
Eaton aims to drop $3B shareholder suit over spinoff after a merger with Cooper Industries.
General Motors can't escape Chevy Cruze diesel emissions class action after a Michigan judge refuses to dismiss suit.
MERGERS, VENTURES, AQUISITIONS
Chinese companies buying US auto suppliers as Takata deal looms. There were at least 7 auto-related deals in the US involving Chinese companies alone in 2016.
Hamm Chemie factory leaks acid fumes leaving over 150 people injured in Germany.
Recitel fire continues to affect supply chains. VW said to reduce Passat output in Germany due to parts shortage
Schedl plans to open wheel and tire assembly plant to supply BMW in Spartanburg County, South Carolina. It will be its first US plant.
U.S. Farathane will add 155 new jobs In Port Huron, Michigan to supply Chrysler.
Automotive glass supplier, Fuyao, will move from Lake Orion to Plymouth, Michigan this fall adding additional capacity and jobs to supply GM, Ford, FCA.
The government of Canada announced $18.2m for automotive innovation benefiting Astrex in Lakeshore and GBatteries in Ottawa.
Maruti's key auto parts provider, Subros, starts supply to Suzuki Motor's Gujarat plant after a plant fire last year.
Subros has also dialed up assembly of Engine Cooling Modules for Denso.
RAW MATERIAL DISRUPTION
Higher steel production and prices are driving the cost of iron ore in China.
Tech Group asks Feds to review proposed 'Driver Mode' rule saying the they may be both misdirected and outside the NHTSA’s authority.
Five Important Supply Chain Events of 2016
The shipping and offshore sectors are struggling in Asia due to slump in oil/gas prices and slow global economic growth.