Is this email difficult to read? View it in a web browser. ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Strike’s Pain Delayed; Driving Auto Exports; Collaborating With Robots

By Paul Page

 

A picket line at the Mopar Parts Center Line Warehouse in Center Line, Mich.

PHOTO: NIC ANTAYA FOR THE WALL STREET JOURNAL

The three-week-old strike by the United Auto Workers is causing a lot of noise but so far hasn’t brought much financial pain to either side. The walkouts have about 25,000 workers picketing at General Motors, Ford and Stellantis, and disrupted automotive supply chains after the union targeted parts distribution centers. But the WSJ’s Ryan Felton reports that the decision to forgo an all-in strike has so far considerably softened the hit to the companies’ bottom lines. When GM’s factory workers struck in 2019, the company lost an estimated $1 billion over the first two weeks. The company’s loss during roughly the first two weeks of the latest strike was about $200 million. Stellantis was subject to the whipsaw effect of the union’s strike strategy when it was spared new strikes at assembly plants but then scrambled to find “passionate volunteers” to work shifts at Michigan distribution sites.

  • General Motors has at least 20 million vehicles built with a potentially dangerous air-bag part that the government says should be recalled before more people are hurt or killed. (WSJ)
 
MEMBER MESSAGE: BUY SIDE FROM WSJ
Prime Big Deal Days with Buy Side from WSJ

Prime sales are returning on October 10 & 11. Subscribe to our newsletter to be the first to know about the best deals to shop, vetted by our team of shopping experts.

Sign up for the newsletter

 

Manufacturing

BYD electric vehicles waiting to be loaded at the port in Suzhou in September.

PHOTO: AGENCE FRANCE-PRESSE/GETTY IMAGES

A few years ago, the founder of Chinese automaker BYD was worried the company might not survive. Now, the company is nipping at Tesla’s heels as the world’s No. 1 seller of electric vehicles and is growing into an export powerhouse. The WSJ’s River Davis and Selina Cheng report BYD, founded in 1995 as a battery maker, plans to sell 3.6 million vehicles this year, likely putting it in the global top 10 automakers by unit sales. The leap has been engineered by founder Wang Chuanfu and his longtime partner, Stella Yi, who helped sell Warren Buffett’s Berkshire Hathaway on the idea that an obscure Chinese company could become a global auto giant. BYD has moved aggressively into Europe and Southeast Asia, and aims to roughly double its export sales to 400,000 vehicles next year. The company has also been ordering its own car carriers to get its vehicles to new markets.

  • California-based IndiEV filed for bankruptcy, about a year after the electric-vehicle startup signed a deal to produce a prototype for Foxconn. (Business Journal)
 
 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 

Quotable

“If we’re headed towards the climate where there is deepening friction between the U.S. and China, your organizations are going to feel it.”

— Jacob Helberg, a member of the U.S.-China Economic and Security Review Commission
 

Logistics Technology

In addition to its heavy-duty industrial robots, Doosan Robotics makes a machine that serves coffee. PHOTO: JOAN CROS/NURPHOTO/GETTY IMAGES

The robots are coming, and more of them are looking to work with you. The latest example of that is South Korean industrial automation company Doosan Robotics, which raised around $300 million as its shares nearly doubled in value in an initial public offering. The WSJ’s Jacky Wong writes in a Heard on the Street column that Doosan makes collaborative robots, or cobots, designed to work together with humans on factory floors. Such robotic helpers are most suitable for smaller companies that may not be ready to automate their whole production line. That has become a popular path in the distribution sector, where some companies say collaborative robots are well suited to warehouse operations that are more varied than work on factory floors. Although cobots are still a small part of the overall robot market, shipments have been growing faster than the market as a whole.

 
 

Number of the Day

12.3%

Decline in loads posted to the U.S. truckload spot market from August to September, leaving demand down 43.4% from September 2022, according to DAT Solutions.

 

In Other News

Flexport is laying off about 30% of its workforce in the second round of job cuts this year. (WSJ)

U.S. imports by value dipped 0.7% in August while exports increased 1.6% from the month before. (MarketWatch)

Clorox says a cyberattack in August will cause the cleaning giant’s quarterly sales to tumble between 23% and 28%. (WSJ)

Wine drinkers who bought from collapsed online marketplace Underground Cellar are fighting with its top lender for the rights to more than 500,000 stored bottles. (WSJ)

Constellation Brands raised its earnings outlook as beer sales rose 12% in the second quarter. (WSJ)

About 78% of retailers and brands in a survey say they still have half their stock left from the 2022 holiday season. (Chain Store Age)

Abu Dhabi wealth fund ADQ and Turkey are in talks to build a railway over Istanbul’s Bosphorus strait. (Bloomberg)

French high-speed train maker Alstom slashed its cash flow forecast because accelerated production has left it with too much inventory. (Financial Times)

IDC projects Taiwan’s share of global chip manufacturing will decline while mainland China’s portion will continue to increase. (South China Morning Post)

Belgium’s Euronav confirmed it is in advanced talks to sell 24 very large crude carriers to rival Frontline for $2.35 billion. (TradeWinds)

Some container lines are announcing Asia-Europe rate increases even as spot prices crumble. (The Loadstar)

Georgia is moving ahead with plans for a third container terminal at the Port of Savannah. (Atlanta Journal-Constitution)

Three women are suing Stevens Transport, saying the trucker wouldn’t hire them as drivers because it said they had no women to train them. (New York Times)

Maersk is using self-driving trucks from Kodiak Robotics on runs between Houston and Oklahoma City. (Journal of Commerce) 

Truckload carrier Knight-Swift Transportation is testing a renewable gas engine Cummins plans to release next year. (Trucking Dive)

A judge ruled freight broker Total Quality Logistics violated wage laws and must pay thousands of former employees for unpaid overtime. (Cincinnati Enquirer)

Foot Locker-owned Japanese retailer Atmos is closing its three stores and e-commerce platform in the U.S. to focus on Asia. (Footwear News)

 

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful. They are unlocked for WSJ subscribers.

CEOs and corporate boards are leading the charge on AI. At the WSJ CIO Network conference held in New York, CIOs and CTOs talked about the pressure to include AI in the digital transformation efforts that began during the pandemic years. Here are some highlights:

  • Walmart's David Glick and Johnson & Johnson's Jim Swanson share business decisions that guide their deployment of AI.
  • The CIOs of Goldman Sachs, Abbott and Rocket Cos. speak on the lessons from early AI deployment.
  • Generative AI startups have offered a bright spot for venture capitalists this year, say VC executives Leigh Marie Braswell and Aaref Hilaly.
 

About Us

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.

 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Policy   |    Cookie Policy
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at sup‌port@wsj.com or 1-80‌0-JOURNAL.
Copyright 2023 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe