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- AlixPartners forecasts U.S. new light-vehicle
sales of 16.4 million units in 2021, and 17.2 million in
2022; the consultancy also estimates raw-materials
prices at $3,636 per vehicle in North
America, compared to an average of $1,875 in 2020.
- GM expects up to $3 billion in
expenses for the second half of the year due to
the ongoing semiconductor
shortage and rising inflation.
- The average new-vehicle transaction
price reached $41,263 in May, representing a
5.4% increase year over year and the third highest on record after
December 2020 and February 2021.
- Stellantis and the National Business
League announced a Black Supplier
Development Program to qualify, train and develop
Black businesses for future contracting opportunities within the
federal government, and in the public and private sectors.
- The last-mile delivery market
is forecast to achieve significant growth
over the next five years, resulting in a potential opportunity
for predictive maintenance technologies
such as "smart tires."
- A bipartisan group of senators introduced legislation intended to create
a 25% investment tax credit for domestic semiconductor
manufacturing facilities or equipment.
- Electric vehicles and low emissions
- GM will increase its planned investment in
electric and autonomous technology to $35 billion
through 2025, representing a 75% increase from
pre-pandemic targets. The investment includes two new U.S. battery
plants by mid-decade.
- While numerous automakers are emphasizing a
transition to battery-electric
vehicles, Toyota plans to have
a variety of engine options in its vehicle portfolio
over the next three decades, stating that "it's too early to
concentrate on one option."
- Ford will acquire fleet charging
service provider Electriphi to strengthen its energy
management capabilities for Ford Pro commercial vehicle
- Sen. Joe Manchin (D-WV) stated that he has "grave concerns" about the industry's transition to EVs because the nation is "totally dependent on foreign supply chains." By some estimates, China directly or indirectly controls 70% of the world's lithium supply, and 80% of the rare earths supply needed for EVs.
- GM will increase its planned investment in electric and autonomous technology to $35 billion through 2025, representing a 75% increase from pre-pandemic targets. The investment includes two new U.S. battery plants by mid-decade.
Market Trends and Regulatory
- A recent
analysis from AlixPartners indicates
the auto industry is susceptible
to supply chain disruption for many materials due to
"short-term industry ordering habits, low visibility into
supply chains, and design and engineering approaches that don't
allow flexibility." The consultancy
forecasts global light-vehicle sales of 83 million in
2021, and 88 million in 2022, with a continued impact of
low inventory and supply shortages leading to sales below
2019's pre-pandemic total of 90 million. [Full report is
not publicly available]
- The National Highway Traffic Safety
Administration has opened 30
investigations into Tesla crashes
since 2016 where advanced driver assistance
systems were potentially in use; the crashes involved
10 fatalities. Within the list provided to Reuters, eight of the
investigations have been opened since March.
- A bipartisan group of senators continue to negotiate over a new $1.2 trillion infrastructure proposal that may include fees on electric vehicles and raising the gas tax among measures to fund the plan.
- Production impact of the semiconductor
shortage – GM's
CFO Paul Jacobson said the automaker will consider partnerships or
longer-term supply contracts with semiconductor
manufacturers as possible approaches to avoid future
chip shortages. Hyundai is reported to be considering options
to diversify its semiconductor supply
chains by shifting some production to South Korean
chip companies. Unnamed sources in Reuters indicated potential
challenges for smaller chip companies to fulfill the capacity
required by automakers in the near term.
and Volkswagen will reduce hours at several German plants in
the coming weeks as a result of the chip shortage. Impacted sites
are Daimler's plants in Bremen and Rastatt, and
Volkswagen's plant in Wolfsburg.
- Subaru will idle two plants in Japan on July 16,
impacting a number of models exported to the U.S., including the
Forester, Crosstrek, BRZ and WRX; the automaker did not indicate
when production would resume.
- Daimler and Volkswagen will reduce hours at several German plants in the coming weeks as a result of the chip shortage. Impacted sites are Daimler's plants in Bremen and Rastatt, and Volkswagen's plant in Wolfsburg.
- GM announced it will invest $35
billion in electric and autonomous technology through
2025, up from a November 2020 target of $27 billion and a
March 2020 target of $20 billion. The automaker plans to build two
new battery cell manufacturing plants in the U.S. by mid-decade,
adding to the previously announced plants under construction in
Ohio and Tennessee. GM also announced its first-half earnings
before interest and taxes will be $3 billion to $4 billion higher
than previous guidance.
- Flex-N-Gate will invest $52
million to build out a new 205,000-square-foot plant
in Troy, Michigan, at the former AxleTech plant. The supplier will
add 245 jobs at this site, and will receive a $1 million Michigan
Business Development Program performance-based grant.
- Goodyear Tire & Rubber Co. announced its first tire intelligence solution intended for cargo vans in field service, construction and last-mile delivery in North America and Europe. Goodyear SightLine uses embedded sensors and artificial intelligence to communicate with fleet operators in real-time on issues such as monitoring tire pressure and predicting breakdowns, resulting in enhanced safety and efficiency.
Connected/Autonomous Vehicles and Mobility Services
- Waymo raised $2.5 billion of venture
funding from Magna International, AutoNation and
Silver Lake on June 16, 2021. Perry Creek Capital, Mubadala
Investment Company, Andreessen Horowitz, Fidelity Management &
Research, Canada Pension Plan Investment Board and Alphabet also
participated in the round.
- Autonomous delivery
startup Nuro and FedEx will partner in a multiyear agreement to
test package deliveries. This marks Nuro's first initiative in
parcel logistics; a pilot program has already begun in
- GM's automotive financing arm will provide a $5 billion line of credit to its majority-owned subsidiary, Cruise LLC, to use for the purchase of self-driving Origin shuttles. The Origin will be the company's first vehicle designed to operate without a driver on board; it's scheduled to go into production in 2023.
Electric Vehicles and Low Emissions Technology
- The Wall Street Journal reports
that several EV startups have demonstrated resilient
share prices in spite of
experiencing strategic challenges and executive
departures since listing as public companies.
- Electrification plans and model launches
-Ford's Lincoln brand will have four new battery-electric vehicles by
2030, with the first due in 2022.Lincoln makes the Corsair,
Nautilus, Aviator and Navigator SUVs, and the majority of the
brand's global sales are intended to be electric by
2026.Volkswagen indicated it will increase
its strategic focus on electrification in the U.S. as
a result of the Biden administration's support of EVs.
Volkswagen plans to launch roughly 70 EV models by 2030, but the
ID4 is currently the only EV it manufactures in North
America. Volvo will invest $118
million in its Ridgeville, South Carolina, plant to
build electric vehicles with its affiliate Polestar
Cars next year. The Polestar 3 is a midsize SUV that will use an electrified
version of Volvo's upcoming Scalable Product Architecture 2
(SPA 2) platform. Mazda announced that all-electric
vehicles will represent 25% of its vehicle lineup, and all
of its products will have "some level of electrification"
by the end of the decade. The automaker will introduce three
hybrids, five plug-in hybrids and three full-electric
vehicles by mid-decade.
business recently announced partnerships with rail
and aerospace companies: the automaker and Wabtec
Corp. signed a nonbinding agreement to build locomotive engines using the
automaker's Ultium electric battery and Hydrotec hydrogen fuel
cell system. The companies did not provide a timetable for when the
technology will be available.GM
and Liebherr-Aerospace will jointly develop a hydrogen fuel
cell-based electrical power generation system for aircraft.
- Volvo announced a joint venture with Swedish
battery maker Northvolt that will begin
with R&D operation in 2022, followed by the establishment of a
new gigafactory in Europe to begin production in
2026.Porsche and German battery
company Customcells will jointly develop high-performance
batteries intended to reduce charging times.
- Solid-state battery maker Solid Power
Inc. will go public through a reverse merger with
Decarbonization Plus Acquisition Corp III; the combined entity will
be valued at approximately $1.2 billion. Solid Power makes
rechargeable batteries for vehicles and mobile power markets, and
its key investors
include Ford and BMW.
- EV startup Canoo will build a plant in Oklahoma that is scheduled to open in 2023; the company did not disclose the expected plant capacity or the size of the investment. Canoo intends to begin production of its seven-seat lifestyle vehicle in the fourth quarter of 2022 through contract manufacturer VDL Nedcar in the Netherlands.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
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