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May 11, 2020 12:00 AM

Intelligence report: How 14 suppliers are faring

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    Intelligence Report

    Automotive suppliers had it rough last year with the U.S.-China trade war, a labor strike at General Motors and declining sales outlooks for the U.S., China and Europe.

    But they likely now long for those days over this year’s global industry shutdown in response to the COVID-19 pandemic.

    Here’s how some of the world’s largest parts companies have been affected.

    Intelligence Reports: Suppliers
    ZF
    Aisin
    Denso
    Hyundai Mobis
    Adient
    Lear
    Faurecia
    Dana
    Magna
    Continental
    Bosch
    Tenneco
    BorgWarner
    American Axle
    The year so far ...

    Jan. 7: The annual CES trade show in Las Vegas, brimming with parts company executives, might be the supplier industry’s first and last public hurrah for 2020.

    Jan. 20: A visiting Webasto employee from Shanghai introduces the novel coronavirus to colleagues at the supplier’s headquarters in Stockdorf, Germany. Eight days later, Webasto closes the German offices for two weeks for a deep disinfecting.

    Jan. 23: After a month of growing concern, Wuhan and three other Chinese cities are put on lockdown to prevent further spreading of the virus, curtailing factory operations there for automakers and suppliers. 

    Feb. 29: With parts shipments from China stopped, GM and other automakers scramble as certain components grow scarce.

    March 15: SAE International cancels the WCX 2020 World Congress, an annual gathering of automotive engineers to discuss technologies and discoveries. 

    March 18: Ford, GM, FCA and Toyota say they will halt all U.S. production, effectively bringing most North American parts factories to a stop.

    March 20: Honda says it will stop North American production.

    March 23: Michigan Gov. Gretchen Whitmer’s stay-home order effectively prohibits auto-parts production for a large share of the U.S. industry.

    March 31: As suppliers around the world tap credit lines to weather the crisis, BorgWarner warns Delphi Technologies that its move to draw down $500 million in credit might jeopardize their planned merger. (In early May, the companies said the deal is moving forward.) 

    April 2: President Donald Trump invokes the Defense Production Act to order GM to make ventilators to assist in treating people who have COVID-19. Several dozen suppliers participate in GM’s effort, while numerous parts companies, including Dana, Denso, Lear and ZF, produce other personal protective equipment for the crisis.

    April 6: Lear distributes a 51-page document, laying out in detail what will be necessary to restart manufacturing. CEO Ray Scott later tells Automotive News that the document was released publicly to reach small Tier 2 and Tier 3 suppliers and make them aware of what will be expected for employee safety.

    April 13: A tornado rips apart a BorgWarner transfer case plant in Seneca, S.C., raising concerns that — even when vehicle assembly resumes — Ford, FCA and Toyota might not be able to produce large pickups and SUVs that require the components.

    April 17: Faurecia notifies workers at its Saline, Mich., plant that it will resume production of Tesla components April 27, despite Michigan’s stay-at-home order. An outcry from workers over health concerns prompts Faurecia to delay the reopening.

    May 4: Daimler’s assembly plant in Alabama is the first in the U.S. to resume making vehicles, using parts on hand from before the shutdown.

    May 7: Whitmer extends the order banning nonessential work to May 28 while allowing manufacturing to begin ?May 11.

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