14/05/2021

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Chips (again), Ssangyong receivership, batteries – the week | Automotive Industry Comment

Friday’s a preferred fish and chips night in some international locations, specifically here in the...

Fridays a popular fish and chips night in some countries, especially here in the UK. Meanwhile, automakers are desperate for chips of a different kind

Friday’s a preferred fish and chips night in some international locations, specifically here in the United kingdom. In the meantime, automakers are determined for chips of a various kind

You want chips with that? The automakers and their suppliers surely do but the microprocessor makers’ fryers just are not equipped to hold up with the queue out the shop doorway. Barely a day goes by without the need of a further chips lack tale on just-auto and it is really likely to choose a although for supply to match demand. To top it all off, one key supplier’s frying room went up in smoke. Renesas Electronics presented an update on chip generation (or deficiency thereof) at its Naka Manufacturing facility in Hitachinaka, Japan, thankfully due to restart by 19 April soon after a hearth shut the manufacturing unit previous thirty day period. “The procedure of the N3 Creating clean room has resumed from 21:00, nine April,” Renesas explained to us in a statement. “In addition to the cleaning of the flooring, underfloor, walls and earlier mentioned and further than the ceiling of the clean room, we have concluded the decontamination of the clean room by replacing the air filters mounted on the ceiling of the clean room. We are sincerely grateful for the rapid support we been given from as numerous as all-around 1,600 people a day from partner firms, equipment manufacturers, products suppliers and construction firms.” A hearth is one of the worst factors that can happen to a manufacturing unit. As effectively as the risk to human daily life and dropping equipment and infrastructure, the mess created by extinguishers, water and smoke can choose as extended to clean up, make making repairs and supply and install new equipment. Renesas and its suppliers and contractors have clearly undertaken a Herculean effort and hard work and we want them the greatest of British for the generation restart. In scenario you missed it, here’s a latest update thinking of the outcome across a variety of automakers.

The chip lack carries on to affect new vehicle generation worldwide. Mitsubishi Motors said it would cut vehicle output in Japan and Thailand in April due to the semiconductor shortfall. Subaru also announced it was suspending functions at one of its crops in Japan in April, resulting in a generation cut of all-around 10,000 cars. GM Korea this 7 days said it would suspend functions at its Incheon No 1 and No two crops for a 7 days from 19 April due to the identical problem while its Bupyeong No two plant has been working at 50% capacity since early February.

It will get even worse: Taiwan Semiconductor Production Corporation (TSMC) has warned the world chip lack affecting industries like automotive and client electronics may perhaps proceed into 2022. The world’s most significant semiconductor company said on Thursday it was making new factories and selecting hundreds of people to match the soaring demand for silicon. About the next a few decades it programs to make investments $100bn in growing capacity. “We see the demand proceed to be large,” CC Wei, CEO of TSMC, explained to buyers. “In 2023, I hope we can provide a lot more capacity to assistance our buyers. At that time, we’ll commence to see the supply chain tightness release a little bit.”

It is also not on the lookout very good on the Ssangyong entrance. Very last 7 days, we mentioned the SUV and pickup truck maker Ssangyong Motor was anticipated to enter a court led restructuring approach soon after its sole potential buyer failed to post a letter of intent (LOI) to invest in the company by a 31 March deadline. This 7 days the other shoe dropped when Ssangyong was place in court receivership, on Thursday, soon after parent company Mahindra & Mahindra failed to entice an trader by the court-mandated deadline. Ssangyong had filed for personal bankruptcy on 21 December 2020 soon after it failed to meet important personal debt obligations with creditors refusing to reschedule repayment deadlines. The company was specified a a few-thirty day period respite from personal debt obligations by the Seoul Bankruptcy Court docket although M&M negotiated sale to a likely buyer. Mahindra had held talks with US vehicle importer HAAH Automotive Holdings to provide all or most of its 75% stake in Ssangyong since previous yr but not letter of intent (LOI) to obtain the automaker arrived in time. The court has now permitted a personal debt rescheduling approach for Ssangyong soon after it received acceptance this 7 days from the its most significant creditor, Korea Development Bank. This is the second time in 10 decades Ssangyong has been less than court receivership. Is this the finish? We do not yet know.

As the automotive market promptly pivots from combustion to electric cars, numerous OEMs are racing to set up lithium-ion battery supply promotions. At the identical time, OEMs are progressively involved about vesting these types of a massive proportion of the value of their EVs outside the house of the company. As their part in present day technology gets a lot more essential, batteries have turn into a new battleground, with individuals in possession of the greatest technology or the most lucrative supply promotions likely to turn into dominant in the future. To capture as a great deal value as attainable inside of their own walls, a number of OEMs now on the lookout to a lot more vertical integration for battery supply. This will be driven by their concern in excess of massive 3rd-social gathering developers these types of as CATL – one of the fastest-escalating vendors of batteries to the market. Here’s a GlobalData analyst’s primer on CATL, what it is, wherever it came from and wherever it is really likely.

Yazaki Europe, North Africa and Yazaki North The usa and Central The usa, president and CEO, Bo Andersson, has stepped down from the helm of both companies. He will proceed to provide the company in an advisory part to sleek the changeover to new management. The Yazaki Europe and North Africa division is now led by Hans Lemmens as president and CEO. Lemmens started at Yazaki in 1993, held numerous positions in income, costing & pricing, programme management, obtaining and plant management and was appointed as Profits EVP in 2018 for Yazaki in Europe. Andersson’s previously career bundled heading obtaining at Saab Car, main of world obtaining and supply chain at Standard Motors, turnaround CEO at GAZ Group and the 1st non-Russian Avtovaz CEO. Rather the resume.

Toyota, a senior market sage explained to me decades back, is like a massive ship which, like that container ship in the Suez a short while ago, normally takes a although to alter direction. At the time, nearly all of Toyota’s design vary was however rear-drive, a decade soon after Europe started switching finishes, and a number of decades soon after most of its Japanese rivals had started to change. When they finally came, the Toyota FWDs have been good and, in some markets I can imagine of, propelled an also-ran to the top of income charts. The giant automaker is in its 3rd decade of hybrids, a lot more a short while ago billed as ‘self charging’, but Toyotas with a electric power wire are a great deal a lot more rare. You will find a pure ‘lecky Lexus in the selling price lists now, the revolutionary Toyota PHEV, the Prius (1st gen had a woefully limited vary) is now second technology and now, drum roll, comes the really preferred RAV4. I invested a 7 days pedalling one all-around and comprehensively favored it. Expensive, however.

New vehicle income in China are continuing to recover. News this 7 days: sales rising by 75% to two.53m units from 1.44m in the identical thirty day period of previous yr, primarily based on passenger vehicle and business vehicle wholesale knowledge produced by the China Affiliation of Car Suppliers (CAAM). At the low position of the COVID pandemic, in February 2020, full vehicle income in China plunged by seventy nine% yr on yr followed by a 43% drop in March. The country’s financial state is believed to have rebounded by close to eighteen% in the 1st quarter of 2021 soon after shrinking by 6.eight% a yr previously, with robust domestic and abroad demand driving a sharp increase in industrial output. The Entire world Bank previous thirty day period said it anticipated economic expansion to exceed eight.% in 2021. In the 1st quarter of 2021 the vehicle market was up by nearly seventy six% (from a low yr back base) at 6.484m units, with passenger vehicle income rising just in excess of 75% to 5.076m units and business vehicle income up by in excess of 77% at 1.408m units. Our on a regular basis up-to-date ‘recovery’ post lists a lot more and a lot more very good news tales these types of as that.

Like rust, our vehicle design futurist never ever sleeps, this time it is really sporty Daimler products and solutions. Electrification will shortly be the default for Mercedes-AMG’s powertrains. Which is a key shift for a Daimler division which started daily life as AMG, a company that raced V8 sedans just before evolving into a little volume maker of speedy generation autos as well. A detailed record of what to expect.

Identical analyst, various subject matter. Vehicle Shanghai kicks off on Monday with press assessments. The most current addition to just-auto’s record of world launches for 2021’s major motor display is the Mercedes-Benz EQB.

It is a offer! ZF has been given a generation contract for its Whole-Assortment Radar technology from SAIC. The radar perceives vehicle surroundings in 4 dimensions, like top, earning it equivalent in ability to optical sensors these types of as cameras and LiDAR. In blend with these systems, large-resolution radar can assistance present the required safety and dependability for semi to really-automatic driving, like amount 4.

Have a great weekend.

Graeme Roberts, Automotive Editor, just-auto.com