Key Developments

  • U.S. new light-vehicle sales are projected to reach a SAAR of 15.4 million units in February, according to a joint forecast from J.D. Power and GlobalData.
  • Debt reduction and higher labor costs are expected to be key concerns this year for a number of suppliers, according to reports inAutomotive News.
  • The approval rate for U.S. consumers' auto loans is estimated to be at the lowest level since August 2020, according to analysis from Cox Automotive excerpted inBloomberg.
  • The U.S. Commerce Department will investigate potential security risks posed by internet-connected vehicles that contain technology originating from China and other countries of concern.
  • The U.S. Federal Communications Commission announced proposed rulemaking and the intent to examine how existing law can be utilized to stop abusers from using internet-connected vehicle technology to stalk domestic violence victims. The FCC in January requested information from nine automakers about their policies forconnected carsin situations involving allegations ofdomestic abuse.
  • Apple intends to halt a years-long effort to build an electric car, according to a report in Bloomberg.
  • The latest issue of quarterly magazine iTECH examines theautonomous truck developersthat remain active, and their progress toward commercialization.
  • Individuals who test positive for COVID-19 can return to work or other public places if they have been fever-free for 24 hours without medication, according to new guidelines issued March 1 by the U.S. Centers for Disease Control and Prevention.

OEMs/Suppliers

  • The UAW and Ford avoided a strike and reached atentative local contract to cover plant-specific issues at the automaker's largest truck plant in Kentucky.
  • Stellantis intends to increase control of its finished-vehicle outbound logistics through measures that include acquiring freight assets.
  • GM may select Piston Automotiveto operate a vehicle parts center at the former Palace of Auburn Hills site in Michigan, according to a report in The Detroit News.
  • Ford plans to open its electric and autonomous vehicle campus at Detroit's Michigan Central Station this June, following a six-year renovation.

Electric Vehicles and Low Emissions Technology

  • Anderson Economic Group analysis found the cost of fueling internal combustion engine (ICE) vehicles in 2023was more economical across multiple vehicle categories when compared toelectricity costs for charging EVs. In addition, "Trends for the recently introduced electric pickup truck segment again saw fueling costs comparable to those of traditional gas or diesel fueled ICE pickups." However, the cost of commercial charging was notably higher than at-home charging across most vehicle segments.
  • Ford stopped shipments of 2024 model year F-150 Lightning electric pickups in early February due to delays in resolving an unspecified quality issue.
  • A U.S. House subcommittee hearing to examine emerging EV fire concerns noted that more data is required to develop guidelines, training protocols and effective technologies to address the complexities oflithium-ion battery fires.
  • UAW representatives have called for improved prevention and safety measures following repeat fires a tGM's Factory ZERO, which borders Detroit and Hamtramck and is dedicated to EV production.
  • Electrified vehicles represented 7 of 10 places onConsumer Reports' top model choices for 2024.
  • Schaeffler will build a $230 million plant in Dover, Ohio to produce components that include electric axles for light- and medium-duty EVs.
  • Lucid Motors will invest $10 million to establish an engineering and research center in Southfield, Michigan. The company will be assisted by a $6 million grantfrom the Michigan Strategic Fund.
  • TheDepartment of Energy announced conditional loans of $544 million toSK Siltron CSS to expand a Michigan plant that provides silicon carbide wafers for EV power electronics, and$166 million to American Battery Solutions for the construction of anadvanced battery packplant in Ohio.
  • Battery technology company Addionics will invest $400 million to build U.S. factories that will produce copper foil for EV batteries.
  • The computing hardware required for certain highly automated driving features is expected to contribute to EV battery drain and present engineering challenges in the years ahead.
  • Volkswagen and Xpeng announced a master agreement to jointly source platform and vehicle parts for an electric SUV that will be sold in China. VW invested $700 million to acquire a stake in Xpeng last year, and the companies intend to jointly launch two EV models by 2026.

Automated, Autonomous or Connected Vehicles Technologies

  • A new report from McKinsey & Company described products or services that utilize applied-AI applications as "the leader by far" among the transformative technologies prioritized by autonomous, connected, electrified or shared mobility companies. The report found that 20% of the 3,500 assessed mobility companies had progressed to the phase of already working on products that utilize leading-edge technologies.
  • Bosch and Microsoft will collaborate to examine ways generative AI could improve vehicle safety systems.
  • The California Public Utilities Commission approved Waymo's request for the expansion of its autonomous taxi service to parts of Los Angeles and certain areas on the peninsula south of San Francisco.

Market Trends and Regulatory

  • Vehicles made by the Detroit Three automakers had very limited representation in the Insurance Institute for Highway Safety's 2024 Top Safety Picks.

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