This report helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. Contact your Foley relationship partner, or John R. Trentacosta or Ann Marie Uetz, to follow up.
- U.S. new light-vehicle sales in August are
forecast to reach a SAAR of 13.1 million to 14.3 million
units, according to estimates from J.D. Power and LMC Automotive and Cox Automotive, respectively.
- Semiconductor factories in
Malaysia are expected to face volatility into next year due to the high rate
of COVID-19 cases in the nation, resulting in potential
supply chain disruptions for automakers.
- Due to semiconductor-related parts shortages,
Ford has production downtime at three North American
light truck plants the week of August 30, and
Stellantis has production downtime of one to two weeks at
four North American plants beginning August 30.Affected models
include Ford's F-150 and Stellantis'
- Mexico cautioned that the region's automotive
sector could be negatively impacted by what it views as a stricter interpretation for content
requirements by the U.S. under the rules of origin
in the USMCA trade pact.
- Ford announced its nonsite-dependent salaried
workforce will not return to the office until
January 2022, instead of October, due to
the increasing COVID-19 caseload in many regions.
- GM has required its U.S. salaried
workforce to confidentially attest to their
COVID-19 vaccination status; the requirement does not
apply to the automaker's hourly workforce.
- Goodyear Tire & Rubber Company announced an agreement to collaborate with Cupertino, California-based Plus on autonomous long-haul trucking solutions.
- Waymo will expand its driver-supported autonomous ride-hailing service to San Francisco; riders can participate in the test program by downloading the Waymo One app.
- Electric vehicles and low emissions
- Electric truck maker Bollinger Motors will expand its vehicle portfolio to offer Class 4 and Class 5 commercial trucks, in an effort to provide broader options to customers.
- Magna CEO Swamy Kotagiri predicts that after 2025, 50% of its sales will be from electrified powertrains for hybrids, plug-in hybrids and fully electric vehicles.
- Rivian announced a confidential submission with the Securities and Exchange Commission for a proposed public listing.
- GM will stop
production of Chevrolet Bolt
EVs at its Orion Assembly plant for two weeks
beginning August 30 because of a battery pack shortage that
resulted from an expanded recall of those vehicles due to fire
Market Trends and Regulatory
- In a recent interview with CNN, Ford CEO
Jim Farley said that absentee rates at some of its
factories can exceed 20%, with the return to a mask
requirement at its U.S. plants cited as a contributing
- A new analysis from IHS
Markit found that brand loyalty for new
vehicles among U.S. consumers is at its lowest rate since August
2015, with the drop attributed to declines in dealer
inventory resulting from the global microchip shortage.
- The U.S. House of Representatives agreed to vote by September 27 on the
Senate's $1 trillion bipartisan infrastructure bill.
- Nissan will extend a production shutdown at its
Smyrna, Tennessee, plant by two weeks as a result
of COVID-19 cases at a microchip supplier in
- Bosch, in a recent interview with CNBC, emphasized the importance of
developing new models for semiconductor supply
chains, including longer lead times and
an increased stock of certain components.
- Toyota will raise the price of steel
materials sold to suppliers by the largest amount in over
a decade, according to Nikkei Asia (subscription).
- BorgWarner invested $10 million in Series A funding in
Tennessee-based renewable energy company Enexor BioEnergy
LLC; Enexor converts plastic waste into thermal
- According to ACT Research, raw material and labor shortages
are reducing manufacturing rates for Class 5-8
trucks, in spite of high demand, with Class 8 production
- Huawei received U.S. approval for license
applications to buy chips for its automotive component
business, according to unnamed sources in Reuters. The telecommunications
equipment maker is subject to U.S. trade restrictions on the sale
of chips and components for use in smartphones and other network
- GM confirmed a layoff at its Toledo
Transmission plant that will affect 16 permanent workers
and 106 temporary workers; the action intends to "align
production with demand" for six-speed rear wheel drive
Connected/Autonomous Vehicles and Mobility Services
- Autonomous delivery vehicle startup Nuro will invest $40 million to
build a manufacturing factory and a closed-course test track at the
Las Vegas Motor Speedway.Companies, including Walmart,
FedEx and Kroger, have tested Nuro's
robotic delivery vehicles.
- Waymo has ended a two-year initiative to sell its lidar
sensors to nonautomotive companies. The company stated that it
plans to focus on developing and launching its Waymo Driver
technology across its Waymo One ride-hailing unit
and Waymo Via delivery unit.
- A Tesla Model 3 crashed into a parked Florida Highway Patrol
car while the Autopilot advanced driver-assistance
system was reported to be engaged; an investigation of the
incident has not yet concluded.
Electric Vehicles and Low Emissions Technology
- Toyota plans to manufacture "integrated dual
fuel cell modules" for hydrogen-powered Class 8
trucks from a new manufacturing line beginning in
2023 at its Georgetown, Kentucky, plant.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.