By on December 18, 2015

 

Who would have known that one of the largest parts supply recalls in U.S. history could poison the well for the rest of your business?

That, and Jeep needs you to keep it dry for a minute, Porsche pulls another player from Volkswagen’s bench and how big does Magna International’s yacht need to be anyway, after the jump.

 

Takata’s entire business may be suffering because of airbag recall

According to Bloomberg, automakers are distancing themselves from Japanese auto supplier Takata and demand is waning for its steering wheels.

Supplying steering wheels is roughly 20 percent of Takata’s business, according to the report, while airbags comprised 37 percent of the company’s revenue.

The declining business would cast doubt as to whether the company could sustain the costs associated with recalling more than 40 million cars with defective airbags. This year, the National Highway Traffic Safety Administration fined Takata more than $70 million for producing the defective airbag inflators, which could spray metal shards into driver and passengers, and said the fine could be substantially higher if the company didn’t effectively complete its recall.

 

Porsche names Reimold as new production chief, not that guy holding the rotor

Porsche announced Friday that Albrecht Reimold would succeed Oliver Blume — who was promoted to CEO in October — as that company’s production chief, according to Automotive News.

Reimold’s promotion is the latest move in a massive reshuffling of that company’s executive group this year, precipitated by the group’s diesel scandal earlier this year.

New Volkswagen Group CEO Matthias Müller announced Thursday a complete line change for its boardroom, including five new executives for R&D, production and sales. Müller was CEO of Porsche before being tabbed to lead the entire group out of its scandal.

Reimold is a longtime Volkswagen Group employee. He began his career at Audi in 1993 and was most recently head of the automaker’s plant in Slovakia.

(Just how deep is Volkswagen’s bench? — Aaron)

2015 Jeep Cherokee Moab

Jeep recalls 56,000 Cherokees for tailgate moisture

Fiat Chrysler Automobiles will recall 56,000 new Jeep Cherokees for a moisture guard on their tailgates that could potentially spark and cause a fire, according to the Associated Press (via The Detroit News).

No fires or injuries have been reported, according to the story.

The recall affects 2015 and 2016 models of the Jeep Cherokee with power tailgates. According to FCA, the Jeeps were made between Feb. 18 and Sept. 10.

Until then, stay dry my friends.

 

Expect more suppliers to consolidate, which means nothing for jobs

Suppliers are expecting more mega-deals in coming years as they consolidate to feed a growing demand for vehicles and automakers press for savings to further drive profits, The Detroit Bureau reported.

The report cited a study by consulting firm EY, which said that 60 percent of surveyed suppliers said they were expecting to pursue acquisitions in the next year.

Already this year, mega suppliers such as Magna International have made big deals to position themselves for future growth in cars. The bulk of the big deals may be in processor, sensor and computer chip businesses, as more chipmakers like Intel look to enter into the automotive fray through established auto suppliers.

According to the report, all that money changing hands and more work won’t mean much for jobs. Which is just great.

2013 SRT Viper GTS Launch Edition

FCA purchased carbon credits from Toyota, Tesla

Fiat Chrylser Automobiles purchased 8.2 million megagrams of carbon credits from Toyota and Tesla, Reuters reported (via Automotive News).

Federal regulators didn’t disclose the purchase price for those credits.

It’s unclear why FCA may have purchased the credits for 2014, the latest year for which data is available. According to Reuters, FCA’s fleet would have been in compliance with emissions regulations without the carbon credits.

Automakers may purchase credits from each other, although the purchase by FCA is fairly unusual — credit sales spiked 400 percent, according to the report.

FCA is ranked last among automakers for average fleet fuel efficiency in 2014 with 20.8 mpg. The automaker is expected to tie General Motors for last place in 2015 with an average fleet fuel economy estimate of 21.8 mpg, according to the report.

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13 Comments on “TTAC News Round-up: Takata Can’t Silo, Porsche’s New Production Boss, Suppliers Love Each Other...”


  • avatar
    tedward

    Well now I want to know what carbon credits cost. I can’t imagine a compelling public interest in keeping this market opaque.

    The only reason it isn’t disclosed is because there’s a story there. It will be interesting to see what that story is.

    • 0 avatar
      CoreyDL

      I can’t imagine they’re very affordable, given the quantity of them is both known and limited.

    • 0 avatar
      Fred

      This site says trees are worth $10-20 each
      http://www.ehow.com/how_5976850_make-money-carbon-credits.html

      • 0 avatar
        CoreyDL

        Truly some journalistic integrity there. I cannot believe I actually just read that.

        Selling carbon credits on Craigslist. Might as well send your money to Prince Adjubu of Nigeria’s east coast region.

      • 0 avatar
        Lou_BC

        Depending on the type of tree and rate of growth. Estimates are anywhere from 400 to 2,700 lbs of Carbon per acre per year.

        In BC where I live 10% of the province is classified NSR or Not Satisfactorily Restocked. That is a quaint term for not properly reforested post log harvesting. We have 9.1 million hectares or 22.5 million acres of NSR. Properly reforested that would sequester 4.5 million to 30 million tons of Carbon. Reforestation would help with global warming and also ensure a sustainable forest resource industry.

        Motor-vehicles on average create 4.7 metric tonnes of CO2 per vehicle per year. It is pretty easy for politicians to single out vehicles as a target. Cars are convenient low hanging fruit.It isn’t as easy to go after heavy industry which pays the bills.

        There are many in the lower mainland especially metro Vancouver that see motor-vehicles as a curse. The myopic knee jerk response by “them” is to ban ICE vehicles. Motor-vehicles are highly inefficient means of moving people around in dense urban areas. The hope is to herd the semi-sentient Iphone clutching lemmings into mass transit and PEV Google pods.

  • avatar
    CoreyDL

    FCA is going to need all those credits when they start selling 325,000 V8 Alfas each year. They’re just being prepared.

  • avatar
    CoreyDL

    So in theory couldn’t manufacturers get together and punish FCA for example?

    “No, we aren’t selling you any credits” Toyota
    “Nein, we made too many of a G-Wagen.” M-B

    And so on, until FCA is forced to ____ take a penalty? Stop selling their inefficient cars?

    • 0 avatar
      Lou_BC

      @CoryDL – the accord signed limiting global warming may already be putting pressure on companies. Toyota or any company with an abundance of credits could use that to play “king maker”. Do we let FCA live or let them die? Maybe Marchionne needs to start courting someone other than Barra? Musk might be better in bed ;)

  • avatar
    SCE to AUX

    “FCA is ranked last among automakers for average fleet fuel efficiency in 2014 with 20.8 mpg.”

    That’s why they did it. I’m sure Nissan has plenty to sell, also.

    It’s a terrible system.

  • avatar
    sirwired

    Takata should just sell (or split off) their non-airbag businesses while they are still worth something and then quietly do the Japanese equiv. of Chapter 7. Let the BK court dole out whatever’s left after the asset sale.

    If I’m an automaker, I’d have absolutely zero confidence that Takata will be able to financially weather the crisis, and I’d be shopping for new sources for all my Takata-supplied parts the second my current contracts were up. Any month the business stays yoked to the airbag operation imperils the value of the rest.

  • avatar
    DeadWeight

    Thanks for the every-6-month letter notifying me that I’m at imminent risk of death-or-serious-maiming-by-land-mine-like-shrapnel-bursting due to my defective and recalled airbag, Mazda & Takata, yet advising that you don’t have the replacement actuator/inflator available yet, but may have it one day in the indeterminate future, and will notify me if that day ever arrives!

    I appreciate those letters greatly!

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