United States:
Foley Automotive Report
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Analysis by Julie Dautermann, Competitive Intelligence
Analyst
This report helps automotive suppliers inform their legal and
operational decisions to help address challenges and opportunities.
Contact your Foley relationship partner, or John R.
Trentacosta or Ann Marie Uetz, to follow up.
Key Developments
- Foley & Lardner LLP Partner Vanessa Miller
was featured in the article, “‘One thing after
another’: More disruption looms over semiconductor
market,” in Supply Chain Dive
discussing the potential for supply chain issues in the
semiconductor industry to worsen due to the ongoing war in Ukraine,
and what the implications are for automakers. - U.S. new vehicle inventory is estimated at 1.11
million units at the end of March, representing a 35 days’
supply industrywide; this is a decline of 54% from the same period
one year ago. - According to J.D. Power, new light vehicle average transaction
prices have declined slightly this year, but remain 26%
higher compared to the end of 2019. - LMC Automotive predicts that
by 2027, light vehicle production in Mexico could
increase by up to 31%, compared to 9% for Canada and 17% for the
U.S. - Toyotalowered its industry
forecast for 2022 U.S. light vehicle sales to 15.5 million
units, down from a previous projection of 16.5 million
units. - According to the March 2022 Consumer Price
Index, new vehicle prices were up 0.2% and used
vehicle prices fell 3.8% from the prior month. Compared to March
2021, new vehicle prices were up by 12.5% and used vehicle prices
were up by 35.3%. - Automakers including Tesla and SAIC
Motor are hoping to gradually resume production in
Shanghai this week following lockdowns in response
to a COVID-19 outbreak. - Major logistics companies indicate they are in
the early stages of testing autonomous truck
technology with multiple providers, and are hesitant to
commit to large orders in the near-term. - Electric vehicles and low emissions
technology: -
- The California Air Resources Board released a
proposal to support
the state’s target to end sales
of internal combustion engine vehicles by 2035. If adopted,
CARB’s plan would require 35% of new passenger vehicle sales to
be zero-emission vehicles or plug-in hybrids by 2026, increasing to
nearly 70% by 2030. - The Government Accountability
Office predicts the federal government may need over
100,000 charging stations to support widespread use of
EVs, up from the 1,100 charging stations owned by federal
agencies as of March 2022. - Honda will invest
approximately $40 billion over the next ten years in
electrification and software technologies, and will launch 30 EV
models globally by 2030. - The auto industry could experience a shortage of
battery supplies for EVs that surpasses the magnitude
of the chip shortage.
- The California Air Resources Board released a
Market Trends and Regulatory
- The Center for Automotive Research provided an
overview of the new
Corporate Average Fuel Economy standards which
increase passenger vehicle fuel efficiency by 8% annually for model
years 2024-25, and 10% annually for model year 2026. - The National Highway Traffic Safety
Administration launched an inquiry
into electric vehicle batteries made by LG Energy
Solution that have been linked to fire risks and
recalls by several automakers in the past two years. - Retail car sales in China declined by
10.5% in March compared to the same period last year,
according to estimates from the
China Passenger Car Association.
OEMs/Suppliers
- According to Crain’s
Detroit (subscription), Magna International
Inc. and Lear Corp. are separately
pursuing expansion plans to capture more business from automakers,
including joint ventures and opening new plants in Detroit. - Wire harness supplier Leoni
AG is operating at up to 80% of prewar output at its
plants in western Ukraine, with employees who
requested to continue working to support the nation amid the
ongoing war with Russia. - GM resumed production
at its Fort Wayne, Indiana, plant this week following a two-week
shutdown resulting from the chip shortage. - Renault and Nissan intend to
meet in person next month for private discussions pertaining to
their alliance, including the possibility of a separate listing for
Renault’s electric-vehicle unit. According to unnamed sources
in Bloomberg,
there are currently “no signs of any imminent structural
change in the three-way alliance that includes Mitsubishi Motors
Corp.” - Volkswagen plans to eliminate
60% of its gasoline- and diesel-powered models by 2030 and will
instead focus on selling more profitable premium vehicles. - At its first digital ESG (Environment, Social and Governance)
Conference, Mercedes-Benzannounced plans to
reduce CO2 emissions per passenger car by over 50% by 2030 compared
with 2020 levels.
Connected/Autonomous Vehicles and Mobility Services
- Guidehouse Insights predicts that
over 1.2 million automated trucks and buses will be
deployed globally each year by 2032, with long-haul
trucking, last-mile deliveries, and middle-mile deliveries as the
dominant applications. [Press release only, full report not
publicly available] - Toyota unit Woven Plant will
increase data collection from
low-cost cameras to help scale up autonomous
driving technology while reducing costs. The company noted the more
costly radar and lidar sensors
have greater safety and reliability for certain types of uses such
as robotaxis. - Aurora Innovation announced a
commercial pilot to haul freight autonomously on a route between
Fort Worth and El Paso, Texas for Werner
Enterprises. - Stellantis will use
Qualcomm‘s Snapdragon Digital Chassis for
upcoming in-vehicle technology platforms as part of an expanded partnership
expected to benefit connected and data services. - Autonomous technology company Argo AI will
invest $2.6 million to establish a new test
facility in South Carolina.
Electric Vehicles and Low Emissions Technology
- Bollinger Motors will develop a Class 3 prototype of
an electric walk-in van for initial piloting by Con
Edison. - American Axle & Manufacturing Holdings,
Inc. will acquire
Hausach, Germany-based Tekfor Group for €125
million in a deal which is expected to increase AAM’s
electrification product portfolio. - Ford will begin production of
its all-electric F-150 Lightning on April 26. - GM and Honda will co-develop a
line of affordable electric vehicles, including
compact crossover vehicles, with global production beginning in
2027. - Nissan is working with NASA to develop solid-state
batteries for electric vehicles beginning with a pilot program
in 2024, followed by a broader rollout in 2028. - Toyota‘s first all-electric vehicle in
eight years, the 2023 bZ4X small SUV,
will begin U.S. sales in May. - Wallbox began construction
of its first U.S.-based EV charger manufacturing facility in
Arlington, Texas. - GM established a
multi-year sourcing agreement with Glencore to
obtain cobalt for EV batteries.
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