Gasgoo Weekly | Webasto China Leadership Reshuffle; Valeo Wins New Orders

 Gasgoo Munich- What major events shaped the global auto industry this week?

GM Signs Automotive Chip Supply Deal with Micron

Micron Technology and General Motors announced on July 1 that they have entered a long-term supply agreement, with Micron set to provide memory and storage chip platforms for GM's vehicle production. Under the deal, GM secures a stable source of memory and storage chips, while the two companies will jointly develop next-generation technologies.

Image Source: General Motors

GM stated that the agreement is a proactive measure to secure key supply chain components, rather than a response to any current production disruptions. Micron, meanwhile, said its ongoing capacity expansion in the U.S. will support the partnership, including the recently upgraded memory chip factory in Virginia.

The chipmaker revealed that the agreement with GM is one of 16 strategic customer supply agreements it has disclosed.

The recent investment boom in artificial intelligence data centers has significantly driven up demand for memory chips. Industry-wide supply is tightening and prices are rising, and the automotive sector hasn't been spared.

A report by S&P Global Mobility shows that since last December, DRAM prices have risen more than expected, climbing roughly 70%. DRAM, or dynamic random-access memory, is a core component for servers powering cloud computing, databases, and AI tasks. As advanced driver-assistance systems (ADAS) and power-hungry in-vehicle infotainment systems become standard, memory chips have become indispensable for vehicle manufacturing.

Gasgoo Take: GM's long-term deal with Micron is essentially a move to hedge against rising storage chip prices and supply chain volatility. Joint R&D also allows the automaker to lay the groundwork for continuous upgrades in its intelligent vehicles, avoiding a passive position.

Webasto China Management Reshuffle: Li Xuejun Takes Over as President

On July 1, Webasto announced a leadership change for its China region. Li Xuejun has officially assumed the role of President of Webasto China, taking full charge of operations and strategic development for the roof systems business. Former President Zhang Lihua has been appointed Group Executive Vice President, overseeing global sales and marketing for roof systems.

Left: Zhang Lihua, Right: Li Xuejun; Image Source: Webasto

Notably, Webasto's sales organization has adopted a dual reporting mechanism alongside this personnel shift, aiming to strengthen collaboration between the global sales network and regional markets.

Public records show Li has over 30 years of experience in the auto industry. Before joining Webasto, he served as CEO and board member of Deutz China. He previously held senior management roles at BAIC Group, Mercedes-Benz China, and Beijing Hyundai. His background spans procurement, global business development, and strategic transformation.

Zhang has long focused on sales in the Chinese market. Webasto cited his ability to maintain client relationships with local OEMs and his sales performance as key factors in his promotion. He will now be responsible for introducing the "China Speed" philosophy to the group's global sales system.

As Webasto's most important single market globally, China's strategic position is undeniable. Webasto entered China in 2001 and surpassed 10 billion yuan in sales there by 2018. Currently, it houses a regional headquarters and foreign-funded R&D center in Shanghai, boasting localized development and manufacturing capabilities.

As Chinese automakers accelerate their overseas expansion, the global supporting capacity of parts suppliers has become a competitive key. By adjusting its management structure, Webasto aims to streamline decision-making between regions and headquarters, securing market share in China while supporting the international layouts of its Chinese clients. Official data puts Webasto's global sales at around 4 billion euros in 2025, with a total workforce of approximately 13,100.

Gasgoo Take: Webasto's reshuffle, with Li taking China and Zhang moving to global sales, creates a two-way talent channel for "local deepening" and "global output." The dual reporting mechanism strengthens China's strategic voice at headquarters while providing the organizational backing to align with Chinese automakers' global pace and export "China Speed."

Valeo Wins New Orders

Recently, Valeo secured a new order for high-level safety technology from a North American electric vehicle manufacturer. It will provide a full suite of corner radar solutions for the automaker's L2+ and L3 intelligent driving systems, covering both hardware and embedded software.

Image Source: Valeo

The latest generation radar system focuses on core safety functions, including Automatic Emergency Braking (AEB), Lane Keep Assist (LKA), and Safe Exit Protection (SEP). Its technical performance has jumped significantly, with resolution 50 times higher than the previous generation. It supports critical safety functions and enables full-scenario driving and parking for advanced autonomous driving. Valeo's radar also supports "eyes-off" capabilities, which OEMs can unlock later via OTA updates.

Valeo's radar platform is designed for maximum modularity. The North American OEM can flexibly customize hardware configurations without increasing complexity, covering everything from entry-level to L3 autonomous driving scenarios. Regarding compliance, the radar kit meets global regional regulations, helping vehicles achieve five-star NCAP safety ratings and comply with the EU's General Safety Regulation (GSR). OTA capabilities also facilitate continuous feature iteration.

Gasgoo Take: Valeo's modular, OTA-upgradable radar solution offers clear advantages for multi-level autonomous driving scenarios. It helps automakers control costs while reserving space for long-term iteration.

Infineon Opens Dresden Wafer Fab Early with €5 Billion Investment

On July 2, Infineon announced the official opening of its Smart Power Fab in Dresden, Germany, several months ahead of schedule. The project represents a total investment of 5 billion euros, marking the largest single investment in Infineon's history and one of Germany's biggest industrial projects in recent years.

Image Source: Infineon

The new facility will double Infineon's production capacity in Dresden, creating the world's largest production base for smart power semiconductors and analog/mixed-signal technology. It will add roughly 1,000 direct jobs, further cementing Dresden and the surrounding "Silicon Saxony" region as Europe's leading semiconductor cluster.

Semiconductors produced here will be widely used in efficient power supply for AI data centers, wind and solar power systems, and software-defined vehicles. Typical applications include smart switches that monitor current in real-time, combining power semiconductors with analog/mixed-signal devices to achieve higher efficiency and smarter system solutions.

Gasgoo Take: The early completion of this 5 billion euro investment validates execution efficiency and gives Dresden a head start at the intersection of AI energy chains and vehicle electrification. However, Europe's energy costs and labor structure remain real variables affecting long-term competitiveness.

BASF and Carlyle Complete Coatings Deal; Suxor Launches as Independent Entity

On the evening of July 1, BASF announced that its coatings business transaction with global investment firm Carlyle (Nasdaq: CG), announced on October 10, 2025, has received all necessary regulatory approvals and was officially completed on June 30, 2026. This marks the successful spin-off of Suxor (formerly BASF Coatings), which now begins operating as an independent company.

Image Source: Suxor

Suxor generates annual sales of 3.9 billion euros and employs approximately 10,700 people globally, making it a leading supplier in automotive coatings and surface treatment solutions. The majority stake is held by funds managed by Carlyle in partnership with the Qatar Investment Authority (QIA), while BASF retains a 40% stake.

Coinciding with its independence, Suxor unveiled its new corporate brand. The new identity is rooted in scientific excellence, a drive for continuous innovation, and the ambition of a newly independent company. It aims to lead industry development through technological leadership and close collaboration with partners.

Under its new name and brand, Suxor will continue to develop, produce, and sell coatings and surface treatment solutions for industrial, automotive, and refinish customers worldwide. Its portfolio includes well-known brands like Chemetall^®, Glasurit^®, and R-M^®, continuing to deliver high-performance, sustainable solutions. Suxor will retain the trusted products, technologies, brands, and support teams, ensuring continuity in reliability, quality, and service across its three business areas.

As an independent company, Suxor will be faster, more agile, and more focused in its decision-making. Carlyle will leverage its experience in spinning off industrial companies to provide strong support for Suxor's global expansion and local operations through targeted investment.

Suxor will be led by an Executive Committee headed by CEO Jens Luehring. Key members include CFO Michael Pontzen, Chief Transformation Officer Ewout van Jarwaarde, Executive VP of Operations (Automotive/Refinish Coatings) Nils Lessmann, and heads of the three business units: Frank Naber (Surface Treatment), Zhengyu Zhao (Patrick Zhao) (Automotive Coatings), and Steve Arndt (Refinish Coatings).

Gasgoo Take: The spin-off of BASF's coatings business into Suxor shortens the decision-making chain and sharpens operational focus, even with BASF retaining a 40% stake. Backed by capital from Carlyle and the QIA, the company is poised to build stronger independent competitiveness in the high-end automotive coatings sector.

Covestro Completes Acquisition of Former Vencorex Plants in Thailand and US

On July 2, Covestro announced it has completed the acquisition of two HDI derivative production sites formerly owned by Vencorex in Rayong, Thailand, and Freeport, Texas. The transaction officially closed on July 1. This move expands Covestro's production footprint in high-performance polyurethane raw materials globally and underscores its long-term strategic commitment to the Asia-Pacific and North American markets.

Image Source: Covestro

HDI (hexamethylene diisocyanate) derivatives are key raw materials for high-performance polyurethane coatings, adhesives, and sealants. They are widely used in demanding applications such as automotive OEM and refinish coatings, anti-corrosion coatings for infrastructure, marine protective coatings, wood and furniture finishes, electronics casings, and high-end industrial coatings. Demand for HDI derivatives is strengthening as environmental regulations tighten and customers require greater durability and weather resistance.

The two new sites will complement Covestro's existing HDI derivative production network in Europe, Asia, and North America, enabling cross-regional capacity coordination and resource allocation. This not only boosts Covestro's supply resilience against market fluctuations but also offers customers more flexible and customized product portfolios.

Gasgoo Take: Covestro's acquisition of overseas capacity strengthens its global raw material layout and supply chain capabilities. Leveraging this production advantage, the company is well-positioned to steadily capture growth in the incremental market.