Foley Weekly Automotive Report – July – 2 | Foley & Lardner LLP
This report helps automotive suppliers make their legal and operational decisions to address challenges and opportunities.
- Loss of production was in July and August planned to the five genetically modified plants and four stellantis plants in North America due to the Chip shortage.
- GM will eliminate wireless phone charging On certain SUV 2021 and 2022 due to delivery bottlenecks due to the shortage of chips.
- According to unnamed sources in Bloomberg, the governments of the US, Canada and Mexico are potentially in Disagreement about the approach to calculating the country of origin for certain vehicle partswhich could affect the gradual introduction of rules of origin USMCA.
- Aptiv and Learn offer COVID-19 vaccinations on site in their facilities in Ciudad Juarez, Mexico; Suppliers recommend vaccinations to their employees, but do not require them.
- The European Commission proposed actions to End sales of internal combustion engine cars in the EU by 2035. The Commission is also aiming for a 55% reduction in CO2 emissions by 2030 from an earlier target of 37.5%.
- Toyota subsidiary Woven planet acquired High definition mapping startup CARMERA in support of his plan to increase investment in mobility technologies.
- Electric vehicles and low-emission technology:
- The combined category of Electric vehicles, hybrids, and plug-in hybrids accounted for 8.5% of US new vehicle sales in the second quarter, after a analysis published by Cox Automotive.
- It is newly announced as part 10-year strategy, Volkswagen expected Electric vehicles will account for half of global sales by 2030, and North America will be the “main focus to increase its market share”.
- GM notified something 2017-2019 bolt owner park outside and avoid charging overnight because of potential fire hazard; the vehicles were part of an earlier recall due to a manufacturing defect in the battery modules.
- IHS Markit predicts worldwide use of charging stations for electric vehicles is at a. increase average annual growth rate of 31% to reach more than 66 million units by 2030with the Greater China region responsible for over 60% of the growth.
- Over a million electric vehicles were sold in China in the first half of 2021, compared to full-year 2020 sales of 1.1 million electric vehicles, according to the China Passenger Car Association, cited in The Wall Street Journal.
Market trends and regulation
- Used car prices rose 10.5% in June, and are 45% more than in June 2020, which most recently accounted for over a third of the seasonally adjusted increase in all items Consumer price index. New cars increased by 2% in June and by 5% compared to June 2020. Used car prices are predicted begin to trend downwards from this month onwards.
- US Automotive Brand Loyalty Study 2021 by JD Power found that consumers stayed true to their favorite brands during the personal shopping restriction during the pandemic lockdown. Subaru, Toyota, Honda, RAM and ford lead mass market rankings and premium brands are led by Lexus, Porsche, Mercedes-Benz, BMW and Audi. [Press release only, no access to full report]
OEMs / suppliers
- Production Impact of Semiconductor Shortages – GM planned downtime in four plants from July 19 to August 2:Lansing Delta community, in Michigan; Spring Hill Montage, in Tennessee; and Assembly of San Luis Potosí and Assembly of Ramos Arizpe in Mexico. GM also extended the downtime for CAMI assembly in Ontario through August 16.Stellantis has planned downtime to the Detroit’s Jefferson North Assembly Plant July 11 to August 1 affecting production of the Jeep Grand Cherokee and Dodge Durango; The plant also has a previously planned shutdown for maintenance work in the week of August 2nd.Belvidere assembly plant in Illinois, Toluca assembly plant in Mexico and Windsor Assembly Plant in Ontario should be canceled by the end of the month.
- GM will eliminate Wireless cell phone charging for certain 2021 SUVs for the remainder of the 2021 model year and temporarily for certain 2022 SUVs. Affected models include certain 2021 Chevrolet Tahoe and Suburban and GMC Yukon and Yukon XL vehicles, and certain 2022 Cadillac XT5, XT6, Chevrolet vehicles Traverse and Buick Enclave vehicles.
- Nissan planned downtime until the beginning of August for the production of the Altima sedan at his Canton, Mississippi, plant, and in the first half of August production at this plant will be reduced on various models.
- Volkswagen announced a new 10-year strategy called New Auto for his Efforts to transform into a “software-driven mobility company”. “The company will invest 73 billion euros (86.4 billion US dollars) in future technologies between 2021 and 2025 and will develop a software platform for all vehicles by 2025. Battery supply chain” and the opening of six battery plants in Europe by the end of the decade.
- GM will invest $ 71 million to build a new advanced design and technology campus in Pasadena, California that will more than double the size of its current North Hollywood location. The new location will open towards the end of 2022. The automaker currently employs 65 to 70 people at its current design location.
- Semiconductor wafer manufacturer SK Siltron CSS will invest $ 300 million and more than double the Michigan workforce with a new location in Bay City. The company is a subsidiary of the South Korean SK Siltron and manufactures a special wafer for use in semiconductor power components for end markets such as electric vehicles.
- The UAW just ratified a six-year employment contract Volvo‘s heavy truck plant in Dublin, Virginia, and ended a month-long industrial dispute that had led to strikes and the rejection of three previous contract offers.
- Companies including ford and GM to have political donations again to members of Congress who voted against the confirmation of the 2020 presidential election, after prior reviews or suspension were carried out in response to the January 6th Capitol Rising. After receiving negative publicity from the Lincoln Project, Toyota recently announced that its bipartisan PAC will no longer contribute to the lawmakers contesting the certification of the 2020 presidential election.
Connected / autonomous vehicles and mobility services
- Continental will integrate LiDAR sensors from AEye Inc. into its autonomous driving systems. AEye Likewise announced a development partnership with Autonomous Truck Company TuSimple.
- Toyota specified that it is planned Increase investments and the number of employees in its woven planet Subsidiary to maintain its competitive position in Mobility technologies, including artificial intelligence.
- Tesla will introduce a monthly subscription service for his advanced driver assistance software for customers who own vehicles that are equipped with “Full Self-Driving Computer 3.0 or higher”. The Full Self-Driving Capability service costs $ 199 per month, as opposed to a pre-payment of $ 10,000.
- The German government is expected to be implemented a nationwide approach to regulating autonomous vehicles, with a Requirement that AVs must be supervised by humans and operated in a defined space.
Electric vehicles and low-emission technology
- GM announced the expansion of his Ultium Charge 360 EV charging program for commercial fleet customers in the US and Canada. Fleet drivers have access to charging via eTransEnergy, EVgo, In-Charge Energy and Schneider Electric, as well as to house installations through GM’s collaboration with Qmerit.
- Lithium metal battery supplier SES holdings will go public in one SPAC offer with Ivanhoe Capital Acquisition Corp. SES, formerly known as SolidEnergy systems, is based in Singapore and has investors such as GM, Hyundai, Kia and the Geely Holding Group.
- South Korea LG Chem will invest Reach 10 trillion won ($ 8.7 billion) by 2025 Growth in the battery materials business and other business areas. Around two thirds of the investments will be used to expand the production of battery materials such as cathodes and separators.
- Manufacturer of electric trucks Rivian will delay production of his first vehicle by two months until September, citing the “cascading effects of the pandemic”About plant construction, device installation and the Supply chain for vehicle components, including semiconductors.
- Worldwide use of EV charging stations is at a. increase average annual growth rate of 31% to over 66 million units by 2030, according to a new forecast from IHS Markit. The Greater China region will account for over 60% of growth this decade, with Europe accounting for about 24% and North America for about 16%. The type and location of the charging infrastructure will vary greatly depending on the region. [Press release only, full report not publicly available]
- Saudi Arabia receives a Almost $ 20 billion in profit on its 2018 investment in the EV manufacturer in the San Francisco Bay Area Lucid engines after the startup merged with blank check company Churchill Capital Corp. has completed.
Created by Julie Dautermann, Competitive Intelligence Analyst Intelligence