Foley Weekly Automotive Report – September 2021 – 5 | Foley & Lardner LLP
This report helps automotive suppliers make their legal and operational decisions to address challenges and opportunities.
- LMC Automotive revised its global light vehicle forecast 80 million units in 2021, 85 million in 2022 and 94 million in 2023, noting that the industry continues to be volatile due to lost production due to shortages of chips and other parts.
- advisory AlixPartners appreciates the global semiconductor shortage will lead to one Production loss of 7.7 million vehicles, and a Loss of income from $ 210 billion this year up from a previous estimate of 3.9 million vehicles and $ 110 billion.
- The pandemic is over Changes to the contractual terms between suppliers and their customers, as well as a increased focus on acts of God, according to Foley & Lardner partner Vanessa Miller in the Wall Street Journal.
- GM informed his non-compliant employees that the non-compliance had a Obligation to report the COVID-19 vaccination status in confidence will result in security breaches and a partial loss of performance awards.
- Stellantis has lost production this week at four North American plants, models like the Ram pickup truck and Jeep Grand Cherokee SUVs.
- Volvo intended Phasing out of leather products in its vehicles by 2030, in anticipation of increasing customer concern for ethical and sustainable material sourcing.
- FedEx will work with truck manufacturers Paccar and technology companies for self-driving vehicles Aurora to launch a commercial pilot test of autonomous trucks in Texas.
- Electric vehicles and low-emission technology:
- Commercial electric vehicle company Electric last mile solutions has started production of its Urban Delivery Van and intends to deliver the first units this month.
- ford will cooperate with SK innovation Construction of EV battery facilities in Kentucky and Tennessee.
- Volvo Electric vehicle subsidiary Pole Star announced that it would go public through a merger with the blank check company Gores Guggenheim.
- Lithium-ion battery recycler Battery resources Raised and raised $ 70 million in one round of funding ford will invest $ 50 million in the battery recycling startup Redwood materials.
- GM President Mark Reuss recently said Recycling the materials used in EV batteries becomes a crucial topic for the auto industry.
- the Michigan Department of Transportation will be launching a call for proposals by the end of the month for a pilot project to develop a 1-mile route for public roads charge an electric vehicle wirelessly. The state also plans to develop one Lake Michigan electric vehicle racetrack, with further details after a feasibility study.
Market trends and regulation
- Industry groups, including the Association of Engine and Equipment Manufacturers, the National Association of Manufacturers, and the Alliance for automotive innovation, sent a letter to the US Department of Transportation asking for the safe’s support efforts to be continued and expanded Use of automated vehicles in the USA.
- Executives from the automotive, technology and semiconductor sectors met with representatives from the Biden administration to identify approaches to improve the Supply chain for automotive semiconductors, including the possibility of the Defense Production Act to get information about the inventory and sale of chips.
- prices for palladium declined by over 20% in September as new car production declined due to the chip shortage. Palladium is an important component of exhaust filters for gasoline engines.
- the Center for Automotive Research (CAR) is overseeing a draft proposal from Congress Extend Refundable Tax Credits up to $ 12,500 for individuals purchasing qualified battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and fuel cell electric vehicles (FCEV).
- Over 70 companies and organizations have issued a letter asking the governors to do so Advanced Clean Trucks (ACT) Rule that obliges manufacturers of medium and heavy commercial vehicles in the participating countries to increase sales of zero-emission models at a percentage of sales over time. The ACT rule was adopted in California and is being considered in states such as Colorado, Massachusetts, New Jersey, New York, Oregon, and Washington. The letter was organized by the non-profit sustainability organization Ceres.
OEMs / suppliers
- Production Impact of Semiconductor Shortages –
- Automakers are expected to do so under the Conversion of “just-in-time” supply chains for critical components such as semiconductors.
- Stellantis extends the downtime for the week of September 27th by his Jefferson North Assembly Plant in Detroit and Belvidere assembly plant in Illinois, which affected the production of the Jeep Grand Cherokee and Dodge Durango SUVs and the Jeep Cherokee crossover. Saltillo truck assembly plant in Mexico and Brampton Assembly Plant in Ontario are also down this week, which is the production of Ram pickups, Dodge Charger and Challenger muscle cars and Chrysler 300 sedans.
- GM plans to resume production in his Wentzville, Missouri Works on September 27th. This plant has been closed since September 6th and produces medium-sized pickups and large vans. GM will be producing at its Lansing Delta community Factory on October 4th. This plant has been closed since July 19 and produces medium-sized SUVs.
- Faurecia lowered its full-year revenue forecast to € 15.5 billion from a previous target of € 16.5 billion as a result of the recent release of. published lowered global vehicle production forecasts IHS Markit.
- Marelli Corp. plans cut 1,500 jobs worldwide, which corresponds to a staff reduction of 7.5% in order to bring staff and costs in line with industry levels.
- Five suppliers transform into shape Teijin Automotive Technologies. Continental Structural Plastics, Inapal, Benet, CSP Victall and Teijin Automotive Center Europe S.deliver composites to automotive and other customers through 29 manufacturing and engineering centers around the world.
- Mike Manley is leaving his role as Head of the Americas for Stellantis Become CEO at AutoNation Inc. Manley was previously CEO of Fiat Chrysler prior to the merger of FCA and Peugeot.
- Toyota will invest $ 288 million and create 450 jobs Alabama to support the manufacture of engines for the 2022 Tundra Pickup Truck.
Connected / autonomous vehicles and mobility services
- May mobility announced a free autonomous vehicle shuttle service for a 2.64 square mile area in Ann Arbor starting next month. The project is being carried out in collaboration with city at the University of Michigan and the Business Development Group Ann Arbor SPARK.
- GM will expand its OnStar Guardian emergency services to include at home through Amazon Alexa.
- GM will invest $ 300 million in the Chinese startup for autonomous driving Momentto support the development of autonomous technologies for future GM vehicles in China.
Electric vehicles and low-emission technology
- Honeywell will deploy its quality control system to ensure the quality and integrity of lithium ion batteries for GM – LG Energy joint venture battery companies Ultium Cells LLC in Ohio.GM recently announced three new engines for its Ultium-based electric vehicles which have been developed in-house and contain integrated power electronics to reduce costs and manufacturing complexity.
- Rivian will invest $ 4.6 million and create 100 jobs in a new customer service center in Plymouth, Michigan. The project is supported by a performance grant of $ 750,000 from Michigan Economic Development Corp.
- Daimler’s Mercedes-Benz will join a European battery joint venture with Stellantis and Total energies. The automakers each hold a third of the shares Automotive cells co. The company is expected to have a capacity of 120 gigawatt hours by 2030.
- Electric vehicle manufacturer Workhorse stops delivering C-1000 vehicles and calls back 41 vehicles that have already been delivered. The company intends to consider the need for further testing and modifications to make the vehicle in accordance with Federal safety standards for motor vehicles.
- Consolidation and restructuring are likely to take place China‘S new energy vehicle Manufacturers, as many companies are unlikely to raise the capital required to manufacture vehicles on a large scale.
- BMW and Volkswagen are among the automakers who are developing the Cars with hydrogen fuel cells. Hydrogen is increasingly coming into focus as a strategy for achieving the climate goals, but in the short term it is viewed as too expensive for the mass market for consumer vehicles and has more potential in long-haul commercial vehicles.
- Hydrogen fuel cell solutions provider Plug-in power supply plans the groundbreaking in 2023 on a Green hydrogen production facility in Fresno County, California.
- Volkswagen plans to invest $ 164 million to build a battery plant in China. The plant will start production in 2023.
Created by Julie Dautermann, Competitive Intelligence Analyst