Elm Analytics - Supply Chain Risk Digest #2 - February 19-24, 2017
CHANGE IN MANAGEMENT
New Tata chairman Chandrasekaran: "We will work together to deliver business performance which is industry leading in all our businesses, and lead... and not follow,"
Carlos Ghosn will step down as Nissan's CEO on 4/1. Hiroto Saikawa (current co-CEO) will become sole chief executive. Ghosn will remain as chairman of Nissan and Mitsubishi.
Magna warns North American "protectionist sentiments" may have negative impact on operations.
VW agrees to spend a bit more though there has been a demand to cut costs.
GM supplier Challenge Manufacturing ends 3w strike to sign 1st UAW bargained contract.
February 27 shutdown of US East Coast Ports in protest of job losses and over regulation looming.
MERGERS, VENTURES, AQUISITIONS
Bids for troubled Takata heat up as companies look to sponsor its restructuring. Key Safety Systems expected to sign agreement.
Analysts: GM sale of Opel, despite job cuts is beneficial for market.
PSA Group submitted a bid for partnership with Proton Holdings for the Lotus Cars unit. This while pursuing a deal with GM for Opel and Vauxhall.
A new Mercedes plant near Moscow, opening in 2019, will create 1,000+ jobs and produce SUVs and the E-Class Sedan.
New Kiekert AG plant in South Korea will produce door-closure systems for a major South Korean auto manufacturer.
Billionaire Carlos Slim and Grupo Bimbo are going to build a 100% Mexican electric vehicle that will start rolling out of the factory in 2018.
First Japanese Gestamp plant, set to open in 2018, will manufacture metal Body in White parts using hot stamping technology.
NSG will increase technology and manufacturing capacity at its Kentucky plant so that the latest Advanced Press Bend process is used to make laminated windshields.
NTN-Bower plant in Macomb, IL will be producing matched-set components for ball joint cassettes in addition to parts for the next Tesla vehicle.
RAW MATERIAL DISRUPTION
Korea Zinc Co. to Reduce Output by 50,000mt - Global Supply Falls 286,000mt Short in 2016
Labor strikes at copper mines in Chile, Indonesia and Peru threaten supply chains. Copper prices are already up 40% and could climb higher if disruptions continue.
Suppliers concerned Mexico tariffs would disrupt optimized supply chains.
With NAFTA in Trump’s crosshairs, Mexico’s border factories brace for the unknown.
Canada and the EU agreed to phase out a 10% tariff on Canada-built vehicles. This includes eliminating a 4.5% tariff on auto parts in a new trade agreement (CETA).
PSA is looking to aggressively redevelop Opel's core models with tech from Peugeot and Citroen if it succeeds in buying GM's Euro arm.