Lex Lemmers

🚗 This Week in Automotive: Challenges & Adjustments 🛠️📉 >Ford Pauses F-150 Lightning Production Amid Falling Demand: 🚫⚡ Ford plans to halt production of its electric F-150 Lightning from mid-November to early January due to decreased demand. >Stellantis Reports Disappointing Financial Results: 📉 Stellantis acknowledges underperformance and commits to improving its financial outcomes in the coming quarters. >Ford's EV Segment Faces Financial Challenges: 💸 Ford's electric vehicle division reported a $1.2 billion loss in the third quarter and projects a $5 billion loss for the year. >Stellantis Reduces Inventory Levels: 📦 Stellantis has reduced its North American inventory by 80,000 vehicles, aiming to align production with demand. These developments highlight the evolving dynamics within the automotive industry, underscoring the need for strategic adjustments in response to market demands and financial pressures. 🔄 #AutomotiveIndustry #Ford #Stellantis #ElectricVehicles #ProductionPause #FinancialResults #InventoryManagement Source: Financial Times, Reuters, The Verge (Image #ChatGPT)

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⚠️ NEW DATE ⚠️ Don't miss our rescheduled LinkedIn discussion about the new "Must" statements in the AIAG APQP 3rd on Tuesday, June 4 at 11 AM ET. Save your spot: https://loom.ly/4NWftE4 #supplychainmanagement #career #automotive #manufacturing #qualitymanagementsystems

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Volkswagen Group's supervisory board is exploring significant measures to address the automaker's mounting cost crisis, focusing on potential plant closures and workforce reductions in #Germany. Discussions reportedly include halting production at the Dresden plant, which employs 300 workers, and selling the Osnabrück facility, where capacity utilization has fallen to just 30%. The Osnabrück plant employs approximately 2,300 people, but finding a buyer has proven challenging, adding uncertainty to the proposed measures.  The Dresden plant, known for its role in producing niche models such as the Volkswagen e-Golf and ID.3 in the past, has limited its operations to small-scale production and assembly, often serving as a showcase for innovation and sustainability. However, its low output and high operational costs make it a prime target for closure. Similarly, the Osnabrück facility, historically focused on producing convertible and small vehicles for Volkswagen and other brands, struggles with underutilization, reflecting broader shifts in consumer preferences and industry challenges.  Reports from manager magazin indicate divisions within Volkswagen’s leadership. The powerful Piech and Porsche families, the company's largest shareholders, are reportedly pushing for more aggressive cost-cutting measures. Their stance contrasts with other board members, who appear more cautious about the social and reputational impact of plant closures. Volkswagen's cost-cutting discussions come amid intensifying labor disputes. Recent negotiations between the company and unions ended without resolution, as record numbers of workers joined strikes across Germany. Unions have expressed strong opposition to plant closures and layoffs, advocating for job security and fair compensation. The next round of talks, scheduled for December 16-17, will be critical in determining the outcome of this escalating conflict.  https://lnkd.in/dJk6K882 #automotiveindustry #electricvehicles #china #europe Tesla BYD MG Motor Europe

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The MEMA Aftermarket Suppliers @Council of Remanufacturing Excellence (CoRE) ReThink Tank is working to document the history of vehicle component remanufacturing and is requesting supplier organizations submit their histories. The goal is to develop a timeline that chronicles the evolution of remanufacturing within the automotive and commercial vehicle industry, highlighting key milestones, innovations and significant contributions from companies that have shaped the remanufacturing landscape. Get more information here -->> https://lnkd.in/gCZaF8rq Submissions for the timeline can be sent to Nikki Rankin at [email protected] #aftermarket #autoparts #autocare #remanufacturing #reman

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The 24th Annual North American Automotive OEM and Supplier Working Relations Index (WRI) Study is out, and the results do not look good for everybody. Toyota, Honda, Nissan, and GM excel in supplier relations, but Ford and Stellantis remain at the bottom. Join David Andrea from Plante Moran, and Sig Huber, Chief Commercial Officer of Elm Analytics, as we discuss the study's findings in the latest episode of the Automotive Leaders Podcast. 🎧 Listen to the full episode here! ➡️https://bit.ly/ALP_2024WRI #automotiveindustry #WRI #Ford #toyota #oem #podcast

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Stellantis recalls 317,630 Ram trucks due to a brake hydraulic control unit issue, potentially affecting antilock brakes and traction control.

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Continental's plan to restructure around its tire and industrial rubber activities will include divesting the automotive original equipment solutions business within the ContiTech business unit.

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Hella Gutmann is urging businesses to seek out training for staff and to invest in the equipment needed to deal with ADAS technology along with a number of other challenges and opportunities. https://lnkd.in/e9JyVcRc

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Is Stellantis facing its time of reckoning? Throughout 2024 — as consumers drifted away from higher prices — dealers have been stuck with bloated inventories and rising floor plan costs — Seriously straining the relationship between Stellantis and its dealer network. Things got so bad that the Stellantis National Dealer Council went public with a scathing letter — calling out leadership for focusing on short-term profits and ignoring long-term damage. So — how did we get here? The past few years — Stellantis has positioned itself as a more “premium” brand. During the pandemic — this strategy worked for a while. Inventory was tight, and customers were willing to pay. But as the market normalized — that approach fell apart… Jeep was pricing itself like Land Rover, with some Grand Cherokees pushing $70K and consumers weren’t buying it. By Q3 — Stellantis had the second-highest average car price in the industry — $55K. Meanwhile, dealers were sitting on more than double the industry average days’ supply for most of the year. One dealer told me newer models were actually being incentivized more than older ones — leaving last year’s inventory stuck on lots. Messy. But since the backlash — Stellantis has started making changes. Leadership got reshuffled, dealer inventories dropped and consumer deals are finally back — helping dealers move aging stock. But — regaining sales volume and rebuilding dealer trust won’t happen overnight. Stellantis will have to: Strengthen local leadership and dealer relationships. Avoiding overcorrection with inventory and incentives. And price products competitively to win back consumers. Let the climb begin. Read the breakdown here, together with Uber for Business: https://lnkd.in/eRd3B_jC

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🚗 This Week in the Automotive Supply Chain 🚗 Several key trends and challenges are shaping the industry right now: 🔧 Worker Shortages & Labor Strikes The United Auto Workers (UAW) strikes are impacting over 150,000 workers across Ford, GM, and Stellantis, halting production in 43 plants. This has led to an estimated $3.95 billion in losses for automakers since the strikes began. With wage increases of 10-20% on the table to retain talent, labor shortages—especially for EV production—continue to challenge the industry. ⚡ (source: Wall Street Journal & Reuters) 🏭 Reshoring Efforts In 2023, over 60% of manufacturers reported reshoring initiatives, with companies like Intel investing billions in U.S. factories. Reshoring has resulted in a 17% reduction in shipping costs for companies, but a 22% increase in operational costs due to labor shortages and higher wages in domestic markets. Despite these challenges, government incentives like the $52 billion CHIPS Act continue to drive this trend forward. 🌍 (source: PWC and Bloomberg) 🌱 Sustainability & Fossil-Free Steel The automotive sector is responsible for roughly 9% of global CO2 emissions, but companies like Volvo are stepping up by investing in fossil-free steel. In fact, Volvo is committed to reducing carbon emissions by 40% per car by 2025. As the demand for decarbonized supply chains grows, the market for fossil-free steel is expected to increase by 27% annually. 🌎 (source: Automotive News & Business Green) 🔋 Scaling EV Production With global EV sales projected to grow 35% in 2024, automakers are scrambling to scale up battery production. The demand for lithium is expected to triple by 2030, while cobalt prices have fluctuated 30% year-on-year due to geopolitical tensions. Despite these challenges, the U.S. government has committed $12 billion toward boosting domestic EV production and battery supply chains to meet the growing demand. 📈 These trends underscore the complexity and evolution of today's automotive supply chain. 🚚💡 As companies face labor disputes, sustainability targets, and reshoring challenges, innovation and adaptability will be key to success! (source: Politico & Bloomberg) What adjustments should we consider in response to emerging tailwinds and shifts in both the local and global economy? How does this impact your business and are you prepared to adjust to changing conditions? #Automotive #SupplyChain #EV #Sustainability #Reshoring #LaborStrikes #Innovation #FossilFreeSteel

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General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp. in China to cost more than $5 billion in noncash charges and write-downs. The restructuring charges for the “SGM” joint venture are anticipated to include “plant closures and portfolio optimization,” according to the filing. GM said most of the costs are expected to be recognized as noncash, special item charges during the fourth quarter.

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Calling off with a hotline system was a manual, anxiety-ridden hassle for everyone at Yanfeng. HR was receiving approximately 150 call-offs per day across a dozen locations and was growing increasingly frustrated with the time and effort that the old process demanded. Not only did that antiquated call-off system impact HR, it left a lot to be desired for the experience of their hourly employees who used it. Learn why Yanfeng replaced their call center call-off system with TeamSense and switched to a text-based solution. Read the case study: https://bit.ly/4f9D37S

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