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Iabs, Dark Web Fueling Ransomware Surge
Manufacturing Business Technology
Iabs, Dark Web Fueling Ransomware SurgeWe talk a lot about the growing complexity of hacking groups and how their tools and tactics continue to evolve. One such evolution is the ongoing specialization that runs rampant throughout the black hat community – especially when it comes to ransomware.  The rise of initial access brokers, affiliate programs, spoofing domain creators, dark web communities, and more are fueling ransomware-as-a-service groups and posing new cybersecurity challenges.  And while numerous reports detail the rise in ransomware attacks and the escalating amounts being paid in seeking a reprieve from denial of service, data extortion, and supply chain hacks, one recent finding really stood out. In their annual State of Ransomware Report, Blackfog stated that manufacturing had the highest number of undisclosed ransomware attacks, when compared to all other industries.  So, as tough as we know the ransomware challenge is – it’s actually a bit worse than we acknowledge because of the growing number of attacks that go unreported. Fortunately, we have an army of highly skilled individuals working to combat these threats. And that includes our guest for today’s episode - Fortra's senior manager of domain and dark web monitoring solutions, Nick Oram. Watch/listen as we discuss: To catch up on past episodes, you can go to Manufacturing.net, IEN.com or MBTmag.com. You can also check Security Breach out wherever you get your podcasts, including Apple, Amazon and Overcast. And if you have a cybersecurity story or topic that you’d like to have us explore on Security Breach, you can reach me at [email protected].
factory
Mar 31, 2025
Trial Will Determine Who Will Pay $600 Million Settlement In Disastrous Norfolk Southern Derailment
Manufacturing Business Technology
Trial Will Determine Who Will Pay $600 Million Settlement In Disastrous Norfolk Southern DerailmentNorfolk Southern wants two other companies to help pay for the $600 million class-action settlement it agreed to over its disastrous 2023 train derailment near the Ohio-Pennsylvania border and the toxic chemicals that were released and burned. The railroad filed the motion that is set to go to trial starting Monday to force the railcar owner GATX and the chemical manufacturer OxyVinyls to share the cost of the settlement because Norfolk Southern believes those companies are partly responsible for what happened in East Palestine, Ohio, on Feb. 3, 2023. This lawsuit won't change anything about how much money residents will receive from the settlement or any payments the village or anyone else is set to receive because those are all established in various settlement agreements. This case will only affect which company has to write the checks to pay for the class-action settlement. Residents are still waiting to receive most of the money from the settlement because of pending appeals, although some payments have started to go out. An assortment of chemicals spilled and caught fire after the train derailed in East Palestine. Three days later, officials blew open five tank cars filled with vinyl chloride because they feared those cars might explode, generating a massive black plume of smoke that spread over the town and forced evacuations. Many residents still worry today about potential health consequences from those chemicals. The derailment was the worst rail disaster since a crude oil train devastated the small Canadian town of Lac-Megantic and killed 47 people in 2013. It prompted the U.S. to focus on rail safety and reforms, which were proposed in Congress before stalling without passing. Norfolk Southern says companies share the responsibility Norfolk Southern already lost a similar lawsuit last year when it tried to force GATX and OxyVinyls to help pay for the environmental cleanup after the derailment that has cost the Atlanta-based railroad more than $1 billion. It is making similar arguments again to try to get help paying for the class-action settlement. “Norfolk Southern alone has paid the costs relating to the derailment despite ample evidence that other parties share in the responsibility. This trial is about reinforcing the role shippers and railcar owners play in transportation safety and ensuring everyone responsible pays their fair share," the railroad said in a statement. Norfolk Southern, like most railroads, doesn’t own most of the cars it hauls, and the railroad says everyone involved in shipping hazardous chemicals bears some responsibility for ensuring their safety under federal regulations. Norfolk Southern argues GATX bears some responsibility for the derailment because it owned the railcar filled with plastic pellets that caused the derailment when its bearing overheated, caught fire and failed that night, sending 38 cars off the rails. Norfolk Southern also said it believes OxyVinyls should pay because the railroad says chemical manufacturer provided inconsistent and inaccurate information about its vinyl chloride before officials decided to release and burn it. Companies say Norfolk Southern was responsible for safety Both GATX and OxyVinyls say it would be ridiculous to hold them responsible for the derailment when Norfolk Southern operated and inspected the train and all the cars and was responsible for delivering the cargo safely. “Norfolk Southern’s claims against GATX are baseless," the railcar owner said in a statement. GATX said it complied with all the relevant regulations for taking care of its railcars. The company said that even if the car was damaged six years earlier by standing parked in the middle of floodwaters from Hurricane Harvey, the railroad should have spotted the problem and repaired it, sending GATX the bill for the repairs. The National Transportation Safety Board said the crash was caused by the failure of an overheating bearing on GATX's railcar. The railroad’s sensors spotted the bearing starting to heat up in the miles before the derailment, but it didn’t reach a critical temperature and trigger an alarm until just before the derailment. That left the crew scant time to stop the train. Norfolk Southern recommended the vent-and-burn operation to release the vinyl chloride based partly on information about the chemical that OxyVinyls had published beforehand suggesting a chemical reaction could happen and cause the tank cars to explode. But the NTSB confirmed in its investigation that was unnecessary because the tank cars were starting to cool off and the railroad failed to listen to the advice from OxyVinyls' experts or share their opinions with the officials who made the decision. “This trial is nothing more than Norfolk Southern’s continued attempt to shift the blame, attention, and financial responsibility for its train derailment, response, and vent and burn decision to anyone other than itself,” the Texas-based company said. “OxyVinyls did not cause the derailment, its tank cars did not breach, and it did not make the decision to vent and burn the VCM (vinyl chloride monomer) cars.” The trial is expected to last two to three weeks.
factory
Mar 31, 2025
Report Demonstrates Ai'S Role In Threat Escalation
Manufacturing Business Technology
Report Demonstrates Ai'S Role In Threat EscalationAbnormal Security recently released its bi-annual threat report Adversarial AI Attacker: Innovation Escalates Advanced Email Threats. It details how weaponized generative AI, easily accessible personal data, and hacking tools on the dark web are fueling a surge in business email compromise and vendor email compromise (i.e. supply chain) attacks.  According to the report, "Email remains the backbone of business communication, but its ubiquity and versatility make it an ideal target for cybercriminals. For decades, attackers have exploited its inherent vulnerabilities, continuously adapting their tactics to stay ahead of defenses. "Legacy security tools, built for an earlier era of threats, struggle to stop today’s sophisticated attacks. Meanwhile, organizations relying on employees to spot threats are fighting a losing battle, as attackers craft malicious emails nearly indistinguishable from legitimate ones. "Now, with AI fueling more deceptive, scalable attacks, the cyber arms race is escalating faster than ever.  Some key findings from the report include:  The full report can be viewed by clicking here.
factory
Feb 20, 2025
Over 1 Million Igloo Coolers Recalled After Amputation Injuries
Manufacturing Business Technology
Over 1 Million Igloo Coolers Recalled After Amputation InjuriesNEW YORK (AP) — Igloo is recalling more than 1 million of its coolers sold across the U.S., Mexico and Canada due to a handle hazard that has resulted in a handful of fingertip injuries, including some amputations. The now-recalled "Igloo 90 Qt. Flip & Tow Rolling Coolers" have a tow handle can pinch users' fingertips against the product — posing potential amputation and other crushing risks, according to a Thursday recall notice from the U.S. Consumer Product Safety Commission. Igloo has received 12 injury reports in the U.S., the CPSC notes, which include fingertip amputations, bone fractures, and lacerations. There are no known injuries in Canada or Mexico. Consumers in possession of the coolers are urged to stop using them immediately — and contact Igloo for a free replacement handle. The now-recalled coolers were sold at major retailers like Costco, Target, Dick's and Amazon between 2019 and January 2025 for between $80 and $140. About 1.06 million were purchased in the U.S., in addition to 47,000 in Canada and another 23,000 in Mexico. The affected products can be identified by model number and description. They were sold in multiple colors with the word "IGLOO" printed on the side and manufactured in the U.S. prior to January 2024. Consumers can register for the recall online or contact Katy, Texas-based Igloo at 888-943-5182 or [email protected] to request a handle replacement. In a statement, Igloo said that it was recalling these rolling coolers and providing free replacement handles "with consumer safety as our top priority." The company added that, "through rigorous testing and proactive steps, we are constantly improving our products to meet the highest safety standards." Additional information can be found on the websites for the CPSC, Health Canada and the OECD's global recall portal.
factory
Feb 13, 2025
Hydrofleet To Build $33 Million Hydrogen Production And Fueling Facility In Georgia
Manufacturing Business Technology
Hydrofleet To Build $33 Million Hydrogen Production And Fueling Facility In GeorgiaSpecialized hydrogen equipment and fuel supplier HydroFleet announced an investment of nearly $33 million in Pooler, Georgia to build a production and fueling station that will service heavy-duty hydrogen fuel cell trucks. The company expects the new facility to initially refuel seven to 14 trucks daily with future capacity reaching 50 trucks per day. Most Read on Manufacturing.net: The development comes after Hyundai Motor Group Metaplant America announced plans to deploy Hyundai XCIENT heavy-duty hydrogen fuel-cell electric trucks, with 21 trucks scheduled to begin operations. “Pooler is an ideal location for HydroFleet’s facility due to the proximity to major interstates, the Port of Savannah and prospective fleet customers,” HydroFleet CEO Scott Moe said. “We know customers want zero-emission fleets but have struggled to source the entire hydrogen ecosystem at a price that is competitive. We look forward to partnering with Pooler to lead the clean energy transition to cost-effective, emission-free heavy truck fleets here in Georgia." Hydrogen trucks replace existing local diesel trucks with an exhaust-free solution and reduced noise. HydroFleet estimated that replacing one diesel powered Class 8 heavy truck with a hydrogen fuel cell truck ca remove 400-plus metric tons of carbon dioxide emissions annually. The company projects that the hydrogen-powered truck fleet serviced by its facility at future capacity will remove 40,000-plus metric tons of carbon dioxide annually from the Savannah area. Click here to subscribe to daily newsletters featuring breaking manufacturing industry news.
factory
Feb 06, 2025
The Other U.S.-Mexico Border Crisis: Water
Manufacturing Business Technology
The Other U.S.-Mexico Border Crisis: WaterImmigration and border security will be the likely focus of U.S.-Mexico relations under the new Trump administration. But there also is a growing water crisis along the U.S.–Mexico border that affects tens of millions of people on both sides, and it can only be managed if the two governments work together. Climate change is shrinking surface and groundwater supplies in the southwestern U.S. Higher air temperatures are increasing evaporation rates from rivers and streams and intensifying drought. Mexico is also experiencing multiyear droughts and heat waves. Growing water use is already overtaxing limited supplies from nearly all of the region's cross-border rivers, streams and aquifers. Many of these sources are contaminated with agricultural pollutants, untreated waste and other substances, further reducing the usability of available water. As Texas-based scholars who study the legal and scientific aspects of water policy, we know that communities, farms and businesses in both countries rely on these scarce water supplies. In our view, water conditions on the border have changed so much that the current legal framework for managing them is inadequate. Unless both nations recognize this fact, we believe that water problems in the region are likely to worsen, and supplies may never recover to levels seen as recently as the 1950s. Although the U.S. and Mexico have moved to address these concerns by updating the 1944 water treaty, these steps are not long-term solutions. The U.S.-Mexico border region is mostly arid, with water coming from a few rivers and an unknown amount of groundwater. The main rivers that cross the border are the Colorado and the Rio Grande – two of the most water-stressed systems in the world. The Colorado River provides water to more than 44 million people, including seven U.S. and two Mexican states, 29 Indian tribes and 5.5 million acres of farmland. Only about 10% of its total flow reaches Mexico. The river once emptied into the Gulf of California, but now so much water is withdrawn along its course that since the 1960s it typically peters out in the desert. The Rio Grande supplies water to roughly 15 million people, including 22 Indian tribes, three U.S. and four Mexican states and 2.8 million irrigated acres. It forms the 1,250-mile (2,000-kilometer) Texas-Mexico border, winding from El Paso in the west to the Gulf of Mexico in the east. Other rivers that cross the border include the Tijuana, San Pedro, Santa Cruz, New and Gila. These are all significantly smaller and have less economic impact than the Colorado and the Rio Grande. At least 28 aquifers – underground rock formations that contain water – also traverse the border. With a few exceptions, very little information on these shared resources exists. One thing that is known is that many of them are severely overtapped and contaminated. Nonetheless, reliance on aquifers is growing as surface water supplies dwindle. Some 80% of groundwater used in the border region goes to agriculture. The rest is used by farmers and industries, such as automotive and appliance manufacturers. Over 10 million people in 30 cities and communities throughout the border region rely on groundwater for domestic use. Many communities, including Ciudad Juarez; the sister cities of Nogales in both Arizona and Sonora; and the sister cities of Columbus in New Mexico and Puerto Palomas in Chihuahua, get all or most of their fresh water from these aquifers. About 30 million people live within 100 miles (160 kilometers) of the border on both sides. Over the next 30 years, that figure is expected to double. Municipal and industrial water use throughout the region is also expected to increase. In Texas' lower Rio Grande Valley, municipal use alone could more than double by 2040. At the same time, as climate change continues to worsen, scientists project that snowmelt will decrease and evaporation rates will increase. The Colorado River's baseflow – the portion of its volume that comes from groundwater, rather than from rain and snow – may decline by nearly 30% in the next 30 years. Precipitation patterns across the region are projected to be uncertain and erratic for the foreseeable future. This trend will fuel more extreme weather events, such as droughts and floods, which could cause widespread harm to crops, industrial activity, human health and the environment. Further stress comes from growth and development. Both the Colorado River and Rio Grande are tainted by pollutants from agricultural, municipal and industrial sources. Cities on both sides of the border, especially on the Mexican side, have a long history of dumping untreated sewage into the Rio Grande. Of the 55 water treatment plants located along the border, 80% reported ongoing maintenance, capacity and operating problems as of 2019. Drought across the border region is already stoking domestic and bilateral tensions. Competing water users are struggling to meet their needs, and the U.S. and Mexico are straining to comply with treaty obligations for sharing water. Mexico and the United States manage water allocations in the border region mainly under two treaties: a 1906 agreement focused on the Upper Rio Grande Basin and a 1944 treaty covering the Colorado River and Lower Rio Grande. Under the 1906 treaty, the U.S. is obligated to deliver 60,000 acre-feet of water to Mexico where the Rio Grande reaches the border. This target may be reduced during droughts, which have occurred frequently in recent decades. An acre-foot is enough water to flood an acre of land 1 foot deep – about 325,000 gallons (1.2 million liters). Allocations under the 1944 treaty are more complicated. The U.S. is required to deliver 1.5 million acre-feet of Colorado River water to Mexico at the border – but as with the 1906 treaty, reductions are allowed in cases of extraordinary drought. Until the mid-2010s, the U.S. met its full obligation each year. Since then, however, regional drought and climate change have severely reduced the Colorado River's flow, requiring substantial allocation reductions for both the U.S. and Mexico. In 2025, states in the U.S. section of the lower Colorado River basin will see a reduction of over 1 million acre-feet from prior years. Mexico's allocation will decline by approximately 280,500 acre-feet under the 1944 treaty. This agreement provides each nation with designated fractions of flows from the Lower Rio Grande and specific tributaries. Regardless of water availability or climatic conditions, Mexico also is required to deliver to the U.S. a minimum of 1,750,000 acre-feet of water from six named tributaries, averaged over five-year cycles. If Mexico falls short in one cycle, it can make up the deficit in the next five-year cycle, but cannot delay repayment further. Since the 1990s, extraordinary droughts have caused Mexico to miss its delivery obligations three times. Although Mexico repaid its water debts in subsequent cycles, these shortfalls raised diplomatic tensions that led to last-minute negotiations and large-scale water transfers from Mexico to the U.S. Mexican farmers in Lower Rio Grande irrigation districts who had to shoulder these cuts felt betrayed. In 2020, they protested, confronting federal soldiers and temporarily seizing control of a dam. U.S. President Donald Trump and Mexican President Claudia Scheinbaum clearly appreciate the political and economic importance of the border region. But if water scarcity worsens, it could supplant other border priorities. In our view, the best way to prevent this would be for the two countries to recognize that conditions are deteriorating and update the existing cross-border governance regime so that it reflects today's new water realities. This article is republished from The Conversation under a Creative Commons license.
factory
Feb 05, 2025
1 In 5 Vehicles On U.S. Roads Have Unfixed Safety Recall
Manufacturing Business Technology
1 In 5 Vehicles On U.S. Roads Have Unfixed Safety RecallAccording to AutoInsurance.com, carmakers issued an average of 21 recalls each in 2024. And while auto manufacturers are on the hook for these repair costs – representing a multi-million-dollar hit to their bottom line –  vehicle buyers play a role, too: they must actually bring their vehicles in to have the service performed. It’s been well documented that many of them don’t, and a recent study by Carfax illustrates just how many that is. Most Read on IEN: Carfax contends there are more than 58 million vehicles with an unfixed recall – a figure that represents one in five vehicles on U.S. roads. Carfax says this number has increased 16% in the past two years. Even more troubling, 14 million of them have two or more open recalls. The firm says these ongoing, unresolved recalls are “significantly raising the risk of critical safety component failures, potentially involving brake systems, airbags and seatbelts.” So why does this gap exist? A 2017 study by the University of Michigan blamed recall ambivalence on consumers' fears of being upsold on other repairs while at the dealership.  Respondents to their survey also said they couldn’t spare their vehicles for the time it took to get the repair and that the wait for the fix was too long. Carfax says it has been working with the NHTSA as well as vehicle manufacturers to help close these recalls, and the data points to where they might start first: Texas leads U.S. states with the number of registered vehicles with 2 or more open safety recalls.  They have 1.6 million. Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
factory
Feb 03, 2025
Ev Market Headwinds Delay Factory Construction Projects
Manufacturing Business Technology
Ev Market Headwinds Delay Factory Construction ProjectsOnce a bustling site poised to power the electric vehicle revolution, a $2.6 billion battery factory under construction in Lansing, Michigan, now sits at a near standstill, its future frozen as economic headwinds stall its progress. EV battery maker Ultium Cells, a joint venture between General Motors and LG Energy Solution, placed construction of its facility on hold in July amid sluggish market conditions, namely high interest rates and concerns around EV demand, according to the company. It intends to resume construction once it has a clearer understanding of this outlook, an official from LG Energy Solution told The Korea Herald. Uncertainty around interest rates is causing many on-hold projects to pile up like water behind a dam, according to Richard Branch, chief economist for Dodge Construction Network. These high rates are especially problematic for projects done in phases, like multibillion-dollar EV plants, where owners need to seek funding to complete each new phase of construction, said David Suchar, a partner at Maslon, a Minneapolis-based law firm. “Many, if not most, construction megaprojects are undergoing some form of delay these days,” said Suchar, who regularly represents clients in construction. “At the center of the delays are a combination of increased construction material costs and borrowing costs due to high interest rates.” For example, LG Energy Solution temporarily paused a portion of its $5.5 billion battery manufacturing complex in Queen Creek, Arizona, earlier this summer due to market conditions, according to a company statement shared with Construction Dive. Around the same time in New Hill, North Carolina, Vietnamese EV maker VinFast also delayed the first $2 billion phase of its manufacturing plant until 2028, citing market volatility. “If you have supply chain issues on one part of the project, that can lead to delays in the project schedule,” said Suchar. “For projects planned in phases over several years with numerous trades involved, you can have a cascading effect.” In addition, consumer demand for these types of cars has been less than expected. Growth rates around EV sales have decelerated this year, according to data from the International Energy Agency. Carmakers across the board, such as Ford and GM, are slashing production plans amid this demand slowdown. Supply chain challenges around key materials, such as lithium, cobalt and graphite, drove up prices and made EVs more difficult to manufacture, said Kari Beets, senior manager of industries research at JLL, a Chicago-based real estate services company. The availability of power, water, labor and land, which are often all in competition with other megaprojects, is also making further investments challenging, as are the unknowns of the political landscape during a presidential election year, she added. “Uncertainty still looms around EV manufacturing, especially with the upcoming election,” said Beets. “The EV industry still remains reliant on incentives and credits.” That creates issues for builders in both staffing placement and timing of long lead procurement, said Anthony Johnson, president of the industrial business unit at Clayco, a Chicago-based construction firm. Clayco is the general contractor on a number of manufacturing projects across the United States, such as Rivian’s $5 billion EV plant in Stanton Springs, Georgia, Entek’s $1.5 billion EV plant in Terre Haute, Indiana, and VinFast’s project in North Carolina. “We are forecasting some disruption, but also some positive impact in the project pipeline this fall, for these same manufacturing companies, as we go through the cycle of an election year and the uncertainty that is inherent in that process,” said Johnson. Keys to mitigating those disruptions are communicating with clients, an efficient procurement strategy and optimizing the timing of resource deployment, he said. The reason that’s important is because those snarls can trickle down to subcontractors and suppliers as well, leading to performance issues and ultimately delays, said Jeffrey Gilmore, chair of the construction practice at Miami-based law firm Akerman. “Lower-tier subs, who can’t perform as expected, who can’t meet rigorous project schedules, who can’t muster what they need in terms of working capital to stay up with the growth in labor and other costs — that can then lead to delays,” Gilmore said. Megaproject construction contracts increasingly include escalation clauses to handle price increases, said Suchar. For example, contractors may agree to cap the cost of any increase or to allow for termination of the contract if the price of materials increases over a certain amount. These types of clauses were not typically found in the standard form contracts used across the construction industry prior to the COVID-19 pandemic, so they usually have to be negotiated in, he added. “They usually grant the contractor the right to additional compensation if the price of a material changes by some fixed percentage from expected cost, usually tied to some index,” said Suchar. “This allows the contractor, who often takes on a great deal of risk for the project budget, to shift the risk of material price increases back to the owner.” These protections ultimately allow contractors to navigate periods of uncertainty with more confidence, said Gilmore. “Of course, there’s the question of whether the owner has the wherewithal to pay for those growing costs — that’s where you see the potential exercise of a suspension, or termination for convenience, as well,” said Gilmore. “The last step that will be taken in order to avoid unforeseen cost growth or changes in market conditions.” As the market waits for further changes — in the form of hoped-for interest rate cuts — Ultium Cells has said it plans to eventually resume construction on its $2.6 billion project in Lansing, Michigan. Similarly, LG Energy Solutions remains committed to completing its $5.5 billion Arizona facility while VinFast expects to restart construction on its $2 billion production plant in North Carolina in 2028. “Parties are often much more attuned to these issues in 2024 than they were when these larger megaprojects began years ago,” said Suchar. “Where the project is far enough along and all parties have the interest of timely completion in mind, a more practical approach is to renegotiate some terms or agree to change orders with an eye toward getting the project done.”
factory
Aug 16, 2024
Goodyear To Expand Ontario Tire Factory For Cad $575M
Manufacturing Business Technology
Goodyear To Expand Ontario Tire Factory For Cad $575MThe Napanee facility, built over 35 years ago, is already a net-zero waste-to-landfill site. However, Goodyear plans to integrate new environmental solutions to enhance energy efficiency and reduce carbon emissions, the release stated. Goodyear is receiving additional support from the Canada government of CAD $44.3 million ($32.3 million) and the Ontario government with a CAD $20 million investment ($14.6 million) for implementing new technologies and skills training programs. The company will also receive CAD $2 million ($1.5 million) from local municipalities. The expansion project will continue to support new co-op opportunities for students every year, according to the Canada Pime Minister Justin Trudeau’s press release. Canada has been prioritizing the growth of its auto sector, which contributed $18 billion to the country’s 2023 GDP and serves as one of its largest export industries, the government release stated. Several other auto giants have promised future investment in the country. In April, Honda Motor Co. and its joint venture partners announced a pledge of up to CAD $15 billion ($11 billion) to build out an electric vehicle supply chain in Canada. The money includes a new EV factory and a separate battery plant in Alliston, Ontario, about three hours west of Napanee. In their joint venture, NextStar Energy, Stellantis and LG Energy Solution invested over CAD $5 billion ($3.6 billion) in an EV battery manufacturing facility in Windsor, Ontario, set to open in 2025.
factory
Aug 14, 2024
Magna Plans Arizona Factory
Manufacturing Business Technology
Magna Plans Arizona FactoryThe Arizona facility will utilize “innovative technology and virtual tools, such as simulations,” to facilitate the integration of new products, according to the release. Magna’s entrance into Arizona builds on the state’s already booming automotive ecosystem. Electric vehicle manufacturers Lucid Motors and Nikola, as well as automated vehicle technology companies such as May Mobility and Gatik, have factories in the area.  Magna has 58 manufacturing and assembly facilities elsewhere in the U.S., according to its website. Last July, the Canada-based company invested over $790 million to build three plants in Tennessee, two of which are a part of Ford’s BlueOval City supplier park.  Yet recent delays at the Ford plant have impacted Magna’s 2026 sales projection. According to its Q2 results, sales projections are now $44 billion to $46.5 billion, down from $48.8 billion to $51.2 billion previously. The automaker delayed its work on a next-generation electric truck until 2026 that was originally supposed to start production by the end of 2025. “Our updated 2026 Outlook reflects customer program updates and a tempered view on mid-term electric vehicle penetration rates, particularly in North America,” Magna International CEO Swamy Kotagiri stated in the Q2 press release. “While we have reduced our sales forecast, we are taking a number of concrete actions to mitigate the sales impacts and continue to expect margin expansion and strong free cash flow growth.” Magna is also seeing headwinds with other EV program delays, cancellations and reduced volumes. “The most significant to us being Ford vehicles in Oakville and BlueOval City, GM’s full-size electric pick-ups and SUVs, and a new program for a North American-based EV manufacturer that was planned for southern U.S. and Mexico,” Kotagiri said in a Q2 call. Magna touts its full-system approach to automobile manufacturing, which it’s continuing to improve. In May, the company acquired power module business HE System Electronic GmbH, which aims to accelerate its in-house development of car modules and leverage its combined technical and manufacturing competencies, Kotagiri noted in the call. "We remain focused on continuous improvement, efficiency and launches. This year alone, we are taking actions in more than 40 divisions to restructure, consolidate or wind down operations. We are right-sizing our complete vehicle operations and we are driving profitability through smart automation and factory of the future initiatives," Kotagiri said.
factory
Aug 13, 2024