All articles tagged with #suppliers
Honda plans to cut more than $9 billion in costs over the next four years by pressuring suppliers to lower prices and increasing sourcing from China, aiming for about a 30% cost reduction in three component categories—pressed/forged parts, electrical parts, and software-defined vehicle parts—with a broader target of 1.5 trillion yen in savings by 2030.
Honda plans to trim about 1.5 trillion yen ($9.4B) in costs by 2030, instructing suppliers to slash prices, standardize parts, and source more Chinese-made components to better compete with BYD and other Chinese EV makers, as EV-related losses exceed $12B; the company is also partnering with Nissan to develop standardized ECUs for software-defined vehicles by 2029 amid tariff and R&D cost pressures.
A report indicates that Apple is demanding its suppliers switch to robotics for manufacturing to enhance efficiency and reduce reliance on human labor.
BYD, a leading Chinese electric vehicle manufacturer and Tesla's main competitor in China, has asked its suppliers to reduce prices by 10% as part of a strategy to enhance competitiveness in the ongoing EV price war. This move has sparked backlash from suppliers already facing tight margins. The price war, initiated by Tesla in 2022, is expected to intensify in early 2025, with major carmakers unable to afford idle production capacity despite strong market demand. BYD's request highlights the pressure on suppliers and the potential for further industry consolidation.
BYD Co., a leading Chinese electric vehicle manufacturer, is reportedly asking its suppliers to accept a 10% price cut starting next year, indicating an intensifying price war in China's auto market. This move, revealed through a leaked email, suggests that BYD is preparing to compete more aggressively in the world's largest automotive market.
Apple CEO Tim Cook expressed the company's intention to increase investment in Vietnam during a meeting with Vietnamese Prime Minister Pham Minh Chinh, with a focus on boosting spending on local suppliers and supporting clean water initiatives for schools. Vietnam is already a key manufacturing hub for Apple, with the company's spending reaching $15.84 billion and creating 200,000 jobs. The tech giant manufactures products such as iPads, AirPods, and Apple Watches in Vietnam, with 25 suppliers in the country as of 2022. Additionally, Vietnam seeks support from Apple in renewable energy development and high-quality human resource training, while activists recently urged the company to address Vietnam's detention of climate experts.
The highly-anticipated OLED iPad Pro has faced another delay in its launch due to production challenges with the display, causing Apple to push the release to early May. Suppliers, particularly Samsung and LG, are struggling to meet Apple's quality and yield requirements for the new panels, leading to disruptions in the supply chain. The delayed launch is attributed to the complexity of the production techniques involved in manufacturing the OLED panels, which are expected to offer unrivaled display quality.
The microLED Apple Watch Ultra project may have lost another key supplier, as manufacturing equipment company Kulicke & Soffa revealed that a "strategic customer" canceled a project related to advanced display technology, potentially linked to the microLED Apple Watch. This follows a similar move by Apple supplier AMS-Osram, indicating that at least two major suppliers are no longer involved. While some sources believe Apple has canceled the project, others suggest the company is seeking alternative suppliers. As a result, the microLED Apple Watch Ultra appears to remain several years away at a minimum.
Chinese electric vehicle suppliers are aiming to utilize their advanced technology to reestablish connections with Western markets and drive their global expansion. With a focus on superior technology, these companies are seeking to overcome previous setbacks and compete on a global scale, particularly in the electric vehicle industry.
Small Boeing suppliers in Washington state, such as Hobart Machined Products, are facing uncertainty and financial strain after U.S. regulators curbed Boeing's production following a mid-air jet panel blowout on an Alaska Airlines flight. The incident risks further erosion of trust and financial strain on the planemaker's most vulnerable suppliers, some of whom could close if Boeing's problems drag on. The FAA's order allows Boeing to continue producing MAX jets but not increase its current monthly rate until the agency is satisfied that quality-control issues uncovered during the probe are resolved, creating confusion and concern among suppliers who had invested in working capital for announced production increases that may not happen.
Kate Middleton's parents, Carole and Michael Middleton, have been targeted in a malicious poster campaign following the collapse of their family's party business, Party Pieces. Messages were posted on lampposts and trees in their home village of Bucklebury, Berkshire. Kate's brother, James, was reportedly seen tearing down the posters. Suppliers have been left unpaid, and creditors are calling on the couple to pay the outstanding sums. Party Pieces, which was sold shortly before going bust, had accumulated £2.6 million in debts. The company's profits had previously supported the Middletons' children's education and their luxurious home. The pandemic and cost-of-living crisis severely impacted the business, leading to its closure.
Amazon and other major businesses are increasing pressure on their suppliers to reduce their carbon footprint, with Amazon announcing that starting in 2024, suppliers will be required to share emissions data, set emissions goals, and report on their progress. This move aligns with the efforts of other companies like Microsoft, Walmart, and Apple. The push for eco-friendly practices comes as businesses face growing demands from consumers, investors, regulators, and governments. However, smaller suppliers are facing challenges in meeting the tracking and reporting demands due to limited resources. Despite the obstacles, companies are expected to step up their sustainability efforts, as failure to comply may result in consequences for suppliers.
French grocery chain Carrefour has placed "shrinkflation" warning labels on products that have recently decreased in size but increased in price, in an effort to pressure suppliers to reconsider their pricing policies. The labels were added to items such as Lipton Iced Tea, Pepsi, Lindt chocolates, and baby milk powder. Carrefour marked 26 products with labels stating that the volume or weight had decreased while the supplier's price had risen. The move comes as brands prepare to negotiate their position with retailers. Shrinkflation, the practice of reducing product size without reducing the price, tends to occur in high inflation environments and is often unnoticed by consumers.
Apple is exploring the possibility of adding BOE and SeeYa as suppliers for the Micro-OLED displays used in its Vision Pro mixed reality headset, in an effort to increase production output and reduce the build cost. Currently, Sony is the sole supplier, capable of producing fewer than one million displays annually. The evaluation process involves testing the displays against Apple's quality-control standards and specifications. The move could also potentially benefit the development of a cheaper version of the headset.
Chinese display manufacturers, including Tianma, are bidding to supply Apple with OLED displays for the fourth-generation iPhone SE. Apple staff responsible for panel procurement have visited major OLED panel factories in China. The upcoming iPhone SE is expected to feature a 6.1-inch OLED display and a design similar to the iPhone 14, with a launch date set for 2025.