Michael Duhaime

We are talking about this in class right now (along w/ Negotiation): “OEMs had an avg profit margin of 8.1% in the 1st quarter, more than 2% higher than auto suppliers…while suppliers stabilized between 5-6%...The challenge for suppliers is that they’re suffering from higher material & energy costs, which they can only partially pass on to OEMs.” https://lnkd.in/gY__BVRs Almost 1/2 of U.S. employees do not feel confident in their negotiation skills: https://lnkd.in/eRM-mJ6J Also: Toyota, Honda and GM Best Automakers to Work With, Suppliers Say: https://lnkd.in/gkU5R3qW Notice: “Cost recovery mechanisms should not be judged in isolation. Inflation-driven cost increases & adjustments need to be addressed in a timely manner that is consistent, tested, & institutionalized & supported by OEM & supplier cost reduction efforts.” 70% of new supplier agreements contain inflation driven economic adjustment clauses with the use of indices being the most common. https://lnkd.in/g_ByzrNU. It might be time for price risk sharing in buyer-supplier relationships. https://lnkd.in/gwPfkdkK   I have asked a lot of SCM managers how they “prepare” to negotiate price increase requests from their suppliers. In particular, I was curious about how and where they get their data from (i.e., CME, COMEX, etc.). Many said their suppliers provide that information. I am not convinced that using data from your suppliers is a form of “Preparation” for negotiation.   What are buyers to do? Procurement orgs need processes & “tools” to mitigate & negotiate on these requests in a strategic, data-driven manner (& we/I need to do a better job of teaching it). Some of our alumni are already testing and / or implementing automated business processes based on such tools, serving as the basis for addressing price indexing implementations (formulas, economic adjustments, etc.) & we're following these implementations from an academic perspective (so that we can teach it). https://lnkd.in/gNrUtNU5 Some Practices that Can Make Your Commodity Related Supply Chain Job More Fun and Rewarding ($$$): https://lnkd.in/gwPfkdkK. #inflation #procurement #rawmaterials #supplychain

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Rivian faces more layoffs, indicating another down cycle for the EV maker in the past 3 years. Too many hiring and firing cycles in short span. Despite having wonderful products and a great following, their potential in the Auto sector seems hindered by challenges in planning and execution. Reports from employees at the Normal, IL plant suggest an environment of organized chaos on the shop floor. What are your thoughts on this situation? Any advice for Rivian to streamline their processes and navigate through these turbulent times? #Rivian #EV #AutoSector #Challenges #Planning #Execution #Layoffs

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GM 🤝 Samsung General Motors and Samsung SDI America Inc. have finalized plans for a $3.5 billion EV battery plant in Indiana, set to begin operations in 2027 ⏳🏭 Initially capable of producing 27 GWh, the facility aims to ramp up to 36 GWh by 2027, creating over 1,600 jobs 👷👩‍🔬 This plant will manufacture high-performance nickel-rich prismatic batteries, enhancing driving range and safety for GM's future electric vehicles ⚡🚗 GM's VP, Kurt Kelty, emphasized that this collaboration will improve performance and reduce costs, while Samsung SDI's CEO highlighted the venture's role in establishing a premium battery production hub in the U.S. This partnership reflects both companies' commitment to advancing the EV market amid evolving demand dynamics 🔋🚀 (Full Article -> https://lnkd.in/erKbyF-q) #battery #EV #Samsung #GM

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There's a good coverage of the interview I gave SAE International in anticipation of my talk at #WCX in #Detroit last week. We discuss how traditional and new automotive companies are different but also beginning to learn from one another. In that interview I also point out that established automakers are exceedingly practiced at R&D, design, engineering, manufacturing and distribution, a process that is sometimes overlooked, dismissed, ignored by newcomers. And I also explain that newcomers are diving headfirst into the digital world, and with software, they can innovate much more quickly because coding something new goes much faster than building new hardware. Read the article under the link below and let me know what you think. #automotive #engineering #mobility #electricvehicles #automateddriving #detroit #siliconvalley https://lnkd.in/eSC5zfRD

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Car tire has an issue, luckily with this break out diagram I can find and fix the issue

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Chinese automakers 🚗, like BYD, are racing ahead of Ford and GM in cost and quality. Ford CEO Jim Farley sees them as a serious threat ⚠️, with their sleek designs and tech-packed EVs ⚡ offered at much lower prices 💰. Despite Ford's efforts to cut costs ✂️, Chinese firms benefit from cheaper labor and battery materials, creating a significant challenge for U.S. automakers globally 🌍. #EVRevolution #AutomotiveIndustry #ChineseEVs #FordVsBYD #CostEfficiency #TechInnovation #ElectricVehicles #Sustainability #GlobalMarkets #Supplychain #SundayStats

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In July, GM's major JV in China, SAIC-GM sold 15,000 vehicles, a year-over-year plunge of 82.42%. For the first seven month, SAIC-GM sold 240,579 vehicles, a year-over-year decline of 55.14%. In the first half of 2024, GM's cumulative losses in China reached US$210 million. From 2017 through 2023, GM's sales in China declined more than 50% already. GM's poor performance may be due to two key reasons. One is the lack of competitive NEV (BEV, PHEV, and FCEV) products; the other is the ever-increasing competition from domestic manufacturers. Some experts atribute the tremendous progress of the domestic manufactuers to automotive technology transfer from foreign OEMs through the JV setup. If this is true, most, if not all of the JVs should perform better. Unfortunitely, most JVs are struggling in China, and the top performers are local OEMs (such as BYD, Chery, Geely, etc.), and many of them are tech companies and startups (such as Huawei, Xiaomi, Nio, Xpeng, etc.). Obviously, it is a completely different game, and the legacy OEMs were not well positioned, and won't be ready for the years to come.

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Steering wheel goes wild under its own power -- Unintended steering due to improper manufacturing calibration. (Ford / NHTSA Recall 24V-493) From the department of you don't need "self-driving" for your software to try to kill you. Piecing together the scant information in the recall report, it seems that a supplier manufacturer inverted wires used to set up steering wheel sensors, resulting in an "inverted polarity" in the sensor. In other words right and left were swapped on the sensor. This sensor was installed in steering power assist in 30K+ Ford Mustangs. So if you pull left, the sensor telling the power steering what you wanted to do thinks you meant to pull right, and the converse. Under some conditions, this means the steering wheel fights you. Or worse, because if the steering wheel pulls hard, you're likely to pull even harder the other way. "The steering wheel may begin oscillating without warning (alternating clockwise / counterclockwise) when the driver attempts to steer. The oscillation results from the electronic power steering gear providing unintended steering assist." I'm aware that a standard aircraft check is to make sure the control stick is wired to the control surfaces without reversed controls. First time I've heard of this happening for a production ground vehicle. NHTSA Recall report: https://lnkd.in/enM2BA6T https://lnkd.in/edEEshGJ

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Once you go EV, you DON'T go back. That guarantees EVs will WIPE OUT IC in the long term "Over 91% of EV owners surveyed say their next car will be an EV." When OEMs measure brand success, one of the key measures is retention. ie will that customer buy again? It's a direct reflection of the experience of their car so far. If any brand has a retention rate of over 50%, they're doing well. So, when I see that EVs have 91% of owners say they'll buy again, that is unbelievably good! (My guess is that it's probably 10% for hydrogen FCEV) What it means is that EVs don't lose customers (except for a small percentage), they only gain. Which means that sales can only continue to expand, which is exactly what's been happening. Eventually that means all new vehicle sales will be EV, even if not government mandated. One of the reasons for this is a significant improvement in the charging network. While most people charge primarily at home, a good experience includes relatively little range anxiety and reliable public charging. While there's a lot of work still to do, it IS improving quickly. The other point worth mentioning is that EVs are simply much nicer to drive than a hybrid or IC vehicle. Smooth, silent, strong linear torque from rest to WAY above the highway speed limit. They're also WAY cheaper to run. If you're still driving an IC vehicle, make sure your next one is EV. You won't go back, I can almost completely guarantee that. Have you noticed that once people go EV, few go back to IC? Let me know your thoughts in the comments below #automotive #batteries #climatechange #electricvehicles #innovation #sustainability #cleanenergy #renewableenergy More here: https://lnkd.in/g4gWh7HV? Pic credit - Financial Times

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⚡ROUNDUP Key headlines shaping the auto industry this week 🚨OEM job cuts It’s brutal out there: Audi to slash 4,500 jobs (Link) Nissan plans to cut 9,000 jobs as it slashes global production (Link) Stellantis deepens cuts to US factory staff (Link) 🚨Partnerships announced last week Stellantis and Infineon Team Up On Architecture For Next-Gen Electric Cars (Link) Lyft and Mobileye partner to commercialize autonomous vehicle services (Link) Ferrari signs a partnership agreement with IBM (Link) 🚨New AUDI sub brand unveiled for China 765 hp AUDI E ditches the four rings, keeps the sexy wagon aesthetic (Link) You've Never Seen An Audi Like This Before (Link) Audi and SAIC debut new brand without four rings logo, first model set to launch summer 2025 (Link) No One Will Ever Convince Me that AUDI Can Be an Audi Sub-Brand (Link) 🚨Rivian News Rivian Bets the House on the Volkswagen Deal, Expects To Power Millions of the Group's EVs (Link) Rivian Is Still Paying For A Big Mistake (Link) Rivian R2 Will Be the First EV To Use LG's New Battery Cells With a Six-Time Capacity Bump (Link) 🚨AI x SDV AI-Driven SDV Rapidly Emerging As Next Big Step (Link) World’s 1st AI-Defined Vehicle? XPeng’s Bold Claim (Link) 🚨Ultra Luxury Segment Jaguar’s Ultra-Luxury Era Begins Dec 2 With New Concept (Link) Electric ‘Bentley Luxury Urban SUV’ will ARRIVE in 2026 – but EV plans pushed back (Link) 🚨Top Headlines 4G-connected anti-theft system protects this cargo ebike when parked (Link) Why Stellantis' STLA Medium Platform Should Make Range Champ EVs (Link) Porsche’s Center Locking Wheels May Exit The Chat (Link) EVs Take 23.6% Share In Germany – Below 2021 Levels (Link) Suzuki's First Mass-Produced BEV Debuts in Europe (Link) Tesla Is Now A $1 Trillion Company (Link) Hyundai Going Back To Physical Buttons Because American Buyers Don’t Like Touchscreens (Link) World EV Sales Report — Top Selling Auto Brands & Groups (Link) What a second Trump presidency means for tech (Link) Aptiv’s Q3 net sales declines 5.1% year over year to $4.9 billion (Link) GM is retiring another gas-powered model to make room for the next-gen Chevy Bolt EV (Link) Geely Galaxy L6 gets the NordThor 2.0 PHEV treatment as specs revealed by regulator (Link) Android Auto Not Working on Your Samsung Phone? You Are Not Alone (Link) Biden-Harris administration invests $44.8 million in EV battery recycling (Link) Volkswagen’s China crisis: Can the German giant survive the EV price war? (Link) Ferrari and Land Rover Show What Current BEVs Will Never Achieve (Link) Get the full report with links: https://lnkd.in/dQXnXSVs

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FYI: New battery plant at Kokomo, Indiana (USA) The StarPlus Energy joint venture between Stellantis and Samsung SDI is part of Stellantis's Dare Forward 2030 strategic plan to electrify its vehicles. The joint venture's strategic plan includes: Building multiple gigafactories: The joint venture is building multiple battery manufacturing facilities in Kokomo, Indiana to support Stellantis's electrification goals: First gigafactory: Construction is underway on the first gigafactory, which is expected to open in the first quarter of 2025. It will have an annual production capacity of 33 gigawatt hours (GWh). Second gigafactory: Construction will begin in 2023 on the second gigafactory, which is expected to open in early 2027. It will have an annual production capacity of 34 GWh. Creating jobs: The joint venture is expected to create a total of 2,800 new jobs across both facilities. Investing in the local economy: The joint venture is expected to boost spending at nearby businesses. Venkat Aiyappan

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Friends ... Here are some additional thoughts on EVs reliability Reliability in automotive vehicles, particularly Electric Vehicles (EVs), is a critical factor for long-term user satisfaction and trust in the technology. From a user’s perspective, reliability primarily revolves around consistent performance, minimal downtime, and long-term durability. When evaluating the reliability of vehicles, several key areas need focus: 1. Battery Performance and Longevity The battery is the heart of any EV, and users are concerned about degradation over time, range anxiety, and how the battery performs in different conditions (heat, cold, etc.). 2. Software Stability and Updates Frequent glitches or poor user interface design in software can severely affect the driving experience, leading to dissatisfaction. Over-the-Air (OTA) Updates: Timely and stable updates that can address performance issues and improve features without inconveniencing users. User-Centric Design: Ensuring the interface is intuitive, responsive, and free from issues that could detract from the driving experience. 3. Powertrain and Components Durability Users expect the powertrain, including motors and inverters, to last for years with minimal maintenance. Reliability in these components assures a smooth driving experience. 4. Charging Infrastructure A vehicle is only as reliable as the ecosystem around it. If users struggle with unreliable charging infrastructure, the perceived reliability of the EV drops. 5. Predictive Maintenance and Diagnostics A vehicle that can predict issues before they occur (predictive maintenance) enhances trust in reliability. Users prefer minimal unexpected breakdowns and downtime. 6. Build Quality and Manufacturing High build quality, including the fit and finish of the vehicle, creates a strong first impression and signals long-term reliability. 7. User Education and Transparency Many users may not fully understand the technology behind EVs, leading to misconceptions about their reliability. Education can empower users to take better care of their vehicles. From the user's perspective, reliability in EVs is about consistency in performance, battery durability, and the integration of advanced yet dependable software and hardware systems. #PREM #EV #CleanEnergy #Automotive #reliability #PVF #

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A Waymo vehicle was involved in a serious crash in Los Angeles. Significant damage and an injured autonomous specialist (possibly acting as a safety driver). Reported details are incomplete, but include: - Struck from behind by a vehicle going 86 mph in a 65 mph zone - Waymo was in autonomous mode at the time of the crash - The specialist on-board was experiencing back pain, which can be a real life-altering issue depending on resolution. Hopefully they recover quickly. - The crash damage suggests a corner impact to the rear, so some lane changing (potentially on the part of the Waymo, but maybe not) could be involved. It is essential that Waymo be transparent in explaining not only how the crash happened, but also what they plan to do to avoid the next one in a specific way. 20 mph speeding is not unexpected on that type of road. This is going to be an easy one for Waymo to apply the "other driver blame" card on and try to sweep this under the rug as they so routinely do. But we also know that speed difference on highways is a safety issue, even if the slower car is going at the speed limit. For this to happen so early in their highway driving time in LA is a clear sign that they will have to come to grips with the speed limit vs. speed difference issue. I'm not saying this is easy, because it won't be. But a crash is a crash is a crash regardless of blame, and if they get too many crashes (even if 100% blame-free) they will still have too many crashes to be viewed favorably by the public in terms of safety.

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Are you ready to shape the future of #vehiclemanufacturing? https://ow.ly/ryXA50SCHBC Attending #AutomotiveSMX in Detroit this August? Don't miss Cprime's Konstantin Popov revealing how integrated platforms and modern operating models can: • Accelerate innovation • Streamline operations • Boost financial performance Learn more: https://ow.ly/ryXA50SCHBC #AutomotiveInnovation #SmartManufacturing

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What does the Tesla Model Y, the #Tesla #Cybertruck and the #Dodge RAM 1500 by Stellantis have in common? All are using either #GigaHotstampings or #MPI in their body in white structure. These giant hot stamped parts are typically made of a #Laser Welded Blank (#LWB). 💎 Key benefits: 👉 🏭 less single parts, operations and footprint the body shop 👉 🌲 Smaller CO2 footprint through better material utilization + thinner gauges by using #PHS steel grades 👉 🚘 💥 🚓 Crash optimization 👉 💲 reduced operational and capital expenditure (OPEX & CAPEX) The first #ArcelorMittal Multi Part Integration™ was launched in 2014. Since then this trend is really growing globally. Have a look at the movie 🎞 below where Jessé Paegle of ArcelorMittal Europe and Christian Koroschetz of AP&T Group 👇 https://lnkd.in/g9T_SYJJ Interested to learn more about the technology or how it can be implemented? Leave a comment or DM me. Looking forward to it. #GigaHotStamping #MultiPartIntegration #MPI #DoorRing #Presshardening #USIBOR #ArcelorMittal Europe #ArcelorMittal Tailored Blanks Europe

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Linus shows step by step how to recreate issues from a charging station in a test case within vTESTstudio and CANoe: https://lnkd.in/dGPpTw5S 🔋

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