Analysis by Julie Dautermann, Competitive Intelligence Analyst
This update helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. Contact your Foley relationship partner, or Ann Marie Uetz, Vanessa L. Miller, or Nicholas J. Ellis, to follow up.
Key Developments
- The first installment of Foley &
Lardner LLP's Auto Trends 2023 Series provides a number of
strategies to help suppliers prepare for warranty and
pricing disputes. The second installment shares details concerning
new rules for the EV tax credit under the
Inflation Reduction Act. Click HERE to subscribe to the series.
- U.S. new light-vehicle sales reached 1.1 million units
in February, representing a SAAR of 15 million
units and a 9.5% increase year-over-year, according to
estimates from LMC Automotive.
- Foley & Lardner LLP's automotive
thought leaders and the Society of Automotive Analysts
(SAA) are hosting the 2023 Automotive EV Outlook at the
Detroit Athletic Club on March 21, 2023, at 4:00 p.m. Please RSVP to attend the discussion and reception
focused on resiliency and other key issues in the electric vehicle
supply chain.
- Cox Automotive estimates U.S. fleet
sales for the first two months of the year are up by 52%
compared to the same period last year.
- Foley & Lardner LLP Partner Marcus Sprow
is quoted in the Insider article, "It's not just the chip shortage — other
supply chain disruptions are wreaking havoc on automakers and
helping keep prices high," discussing the production
challenges automakers are facing in light of the pandemic, the
shift to electric vehicles, and supply chain difficulties.
- Foley & Lardner LLP
provided an overview of recent developments with
electric school buses, and their potential as a
mobile power source using vehicle-to-grid (V2G) and
vehicle-to-everything (V2X) technologies.
- According to BofA analysis excerpted in Utility Dive, provisions in the
Inflation Reduction Act could incentivize over
$31 billion in U.S. EV battery manufacturing
capabilities between 2022 and 2031.
- A report from public-private partnership
Li-Bridge estimates the U.S. will require over $100 billion
of incremental investments to strengthen domestic
lithium battery supply chains. The report also notes the
U.S. battery industry currently captures less than 30% of the value
of each cell sold domestically, due to the lack of a
"substantial lithium battery supply chain."
- Ford plans to resume production of the F-150 Lightning electric pickup on March 13, following a five-week shutdown due to a battery issue. The vehicle is expected to have a run rate of 150,000 by the end of 2023, representing more than double the volumes produced in 2022.
OEMs/Suppliers
- The winner of the UAW presidency is dependent
on the resolution of approximately 1,600 challenged ballots
resulting from a runoff election between incumbent Ray Curry
and challenger Shawn Fain.
- GM will temporarily idle its light-duty truck plant in Fort Wayne, Indiana for two weeks beginning March 27, in order to "maintain optimal inventory levels."
Electric Vehicles and Low Emissions Technology
- Tesla announced plans for a new gigafactory
in Monterrey, Mexico, and the facility will manufacture a
next-gen vehicle.
- Webasto opened a new plant in Guanajuato, Mexico, and
it is the first site dedicated to the company's charging
business in the American region.
- The U.S. Postal Service announced plans to purchase over 9,000
Ford E-Transit battery electric vans, with
deliveries set to begin in December 2023.The USPS also awarded
contracts to three suppliers for the purchase of over 14,000
charging stations that will be installed at Postal Service
facilities.
- Uber Freight will partner with mobility company
WattEV and shipping specialist
CHEP to deploy electric trucks on select routes in
Southern California. This represents Uber Freight's first
electric truck pilot.
- Nissan announced it will ramp up its electrification
strategy, with plans to release 27 electrified models, including 19
EVs, by the end of the decade. The automaker also intends to reach
a global electrification mix of 55% by 2030, up from 50%
previously.
- Stellantis invested $155 million into a copper mining
project in Argentina. The automaker will become the second largest
shareholder in McEwen Copper, which is a
subsidiary of Canada's McEwen Mining. A number of major
automakers have increasingly focused on metals and mining as part of an effort to
secure supply chains for EV batteries.
- Bloomberg reports battery-powered EVs
are often underperforming during higher-speed highway
driving compared to expectations based on the
vehicles' range estimates.
- Volkswagen-backed Scout Motors announced plans to invest $2 billion to
establish its first U.S. manufacturing facility in South Carolina.
The new plant is expected to begin producing electric trucks and
SUVs by the end of 2026.
- According to the J.D. Power 2023 U.S. Electric Vehicle Experience (EVX) Ownership Study, Rivian's R1T pickup truck ranked highest in overall satisfaction and highest in the premium BEV segment. MINI Cooper Electric is ranked first in the mass market segment.
Automated, Autonomous or Connected Vehicles Technologies
- The Autonomous Vehicle Industry Association
released federal policy recommendations to help advance
the deployment of AVs in the U.S. Key recommendations include
reforming the exemption process and modernizing certain vehicle
regulations to accommodate autonomous operation.
- As part of a multi-billion dollar deal,
Mercedes-Benz will incorporate
Luminar's lidar sensors and software in a
"broad range" of vehicles beginning mid-decade.
- Ford established a new wholly-owned subsidiary, Latitude AI, that will focus on developing automated driving technologies for future vehicles.
Market Trends and Regulatory
- S&P Global Mobility's annual Automotive Loyalty
Awards recognized GM in the
"overall loyalty to manufacturer" category for the
automaker's eighth consecutive win, and for the first time
Tesla was the winner for "Overall Loyalty to
Make."
- The European Union delayed a vote on a law which would require new passenger cars sold in the bloc to be zero-emission vehicles beginning in 2035, following concerns raised by Germany regarding the economic impact.
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