Elm Analytics - Supply Chain Risk Digest #10 - April 15 - 21, 2017
CHANGE IN MANAGEMENT
Denso has named Norihito “Jack” Tanahashi the SVP of original equipment supplier sales. Tanahashi will oversee Denso Products and Services Americas sales to all the major automakers.
More fallout at Uber: Sherif Marakby, VP of global vehicle programs at Uber, has left the ride-hailing company. Marakby joined Uber in April 2015 after a 25-year career at Ford and helped the company launch its self driving ride-hailing pilot program in Pittsburgh.
Suppliers now manufacture close to 70% of a car's components. With more power in the market and margins under pressure, suppliers are at a higher risk for litigation.
MERGERS, VENTURES, AQUISITIONS
Suzuki Motor, Toshiba and Denso are creating a joint venture for production of automotive lithium-ion battery packs in India.
Chinese internet giant Baidu has said it will share much of the technology it has created for its self-driving cars. A partnership with Harman and Bosch was announced at the Shanghai auto show this week. They aim to offer its full range of developments to support self-driving for highways and city roads by 2020.
Continental and China Unicom have agreed to set up a joint venture in China to create intelligent transport systems (such as vehicle data services) and connected vehicle software. They will each hold 50 percent in the venture to be called Unicom Continental Intelligent Transportation Technology.
Slovenian electronics supplier Kolektor acquires German Conttek. Conttek specializes in composite-metal hybrid parts. The sale also includes Czech subsidiary Tesla Jihlava.
PLANT DISASTERS & SHUTDOWNS
General Motors halted operations in Venezuela after their plant was seized by public authorities. GM described the takeover as an "illegal judicial seizure of its assets".
A drum of construction cleaning solvent was spilled at a loading dock and an area of the building was evacuated at the Tesla Gigafactory.
PLANT OPENINGS & EXPANSION
Continental will open a new 65,000 sq. ft. Silicon Valley Research and Development Center. The facility will house 300 engineers, programmers, and designers from five divisions of the company.
Shanghai GKN Huayu Driveline Systems plans on producing over 1 million eDrive units per year by 2025 at its joint venture facility in Shanghai. The facility will open in late 2017.
Hyundai Mobis has opened a new lamp plant in the Czech Republic and production has commenced. The plant has a capacity of 750,000 headlamps modules and tail lamps totaling 1,500,000 lamps each year.
Brose has opened a new headquarters and adjacent plant in Shanghai, China. The supplier will further expand its 48v electromobility and mechatronics products.
Hanwha is expanding its plant in Opelika, Alabama. They plan on spending $20 million in investments and adding 100 more jobs. The plant makes interior headliners, door panels and bumper inserts for Hyundai, Volkswagen, Kia and Honda.
Continental will expand its Morganton, North Carolina plant that manufactures anti-lock braking systems.
The first all-electric Volvo is expected to be produced in China, and then exported globally in 2019.
The US commerce secretary will investigate if imports of steel were a threat to US national security. The move treads on new and uncharted territory with uncertain outcomes.
President Trump signed an executive order that changed requirements for guest worker visas and requires agencies to buy more goods and services from U.S. companies and workers.
5GAA has submitted comments to the National Highway Traffic Safety Administration on short range vehicle communications (DSRC).
Regulators in China are pushing automakers to sell electric cars, but buyers want SUVs. First Quarter SUV sales soared 21% from a year earlier, while electric vehicle purchases sank 4.4%.
China's Ministry of Commerce updated regulations this week. Dealers will no longer need gov't authorization before selling cars. Additionally, automakers and auto suppliers will not restrict dealer operations. Officials are hoping to create new electric vehicle service networks and encourage sales in rural areas.
Chinese automakers such as giants SAIC and Dongfeng may see billions of dollars in profits evaporate if the government follows through on lifting protectionist measures and let foreign companies operate without a local partner.
A new PWC study reveals that managing risk from the first line business units correlates to higher revenue and profit. The study outlines a 5 step "Front Line" collaborative approach to risk management.
Hackers are on the minds of managers of connected factories. New, digitally integrated, equipment needs to stay on a secure network. Last year there was an 89% growth in insurance policies that cover cyber intrusion.