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.
Key Developments
- U.S. new vehicle average
transaction prices reached $46,329 in November, and are up by
over 13% compared to November 2020.
- In an effort to strengthen global semiconductor supply
chains, Stellantis will partner with contract
manufacturer Foxconn to design
semiconductors for use in the automaker's vehicles by 2024,
and BMW signed a long-term
agreement with Inova
Semiconductors and Globalfoundries
Inc. to secure a supply of "several
million" chips per year for use in in-car lighting
systems.
- Software-based services are increasingly
an area of focus for automakers, but it is
unclear whether consumers will be willing to pay for software
subscriptions. By 2030, GM plans to receive up to $25 billion in
annual revenue from software-enabled products and services, and
Stellantis announced a goal to generate up to 20
billion euros in annual revenue.
- The Center for Automotive
Research provided recent
commentary on automotive
industry greenhouse gas performance,
as well as usage of EPA carbon credits.
- Intel is planning an IPO in the next year for its
autonomous vehicle business
unit Mobileye. Intel acquired the
company in 2017 for approximately $15 billion.
- Electric vehicles and low emissions
technology:
-
- The Biden administration announced its strategy for building
a nationwide network of charging stations for electric
vehicles.
- More than 50 U.S. power companies are partnering to build
a coast-to-coast charging network for electric
vehicles by the end of 2023, as part of the newly
formed National Electric Highway Coalition.
- President Joe Biden signed an executive order in support of a goal to
reach net-zero greenhouse gas
emissions across federal government operations by
2050, which includes the requirement that federal
agencies buy only zero-emissions vehicles by 2035.
- The Alliance for Automotive
Innovation released its Recommended Attributes for EV Charging
Stations that comments on topics including charging rates,
network requirements, pricing and station layout.
- The Wall Street Journal published an overview of the upward trajectory of lithium prices.
- The Biden administration announced its strategy for building
a nationwide network of charging stations for electric
vehicles.
Market Trends and Regulatory
- The Canadian government, in line with Mexico, stated that it could impose tariffs in response to proposed U.S. legislation that would offer consumer tax credits for electric vehicles that are union-made in the U.S. Prime Minister Justin Trudeau indicated that conversations to resolve the dispute are ongoing, and include the option of aligning EV incentives to ensure there are "no unfair advantages on one side or the other." The EU also expressed its concern to Senate leadership about the proposal's potential to result in discrimination against European cars and car parts.
OEMs/Suppliers
-
Bosch and Volkswagen are reported to be nearing an agreement to
collaborate on automotive software.
- Toyota announced temporary production shutdowns
in Japan due to parts
shortages, affecting output of Lexus models and the Toyota
Land Cruiser. Last month Toyota
announced plans to resume normal levels of
production in December at its plants in Japan.
- Volkswagen Group is reported to be considering an initial
public offering for its Porsche brand,
as part of an approach to fund its shift toward software and
electrification.
- Ford will invest over $900 million to
modernize its two plants and its supply chain network
in Thailand.
- Volvo experienced a cyberattack focused on its
R&D property, and concluded that there may be an "impact
on the company's operations."
- Daimler Truck began trading December 10 on the Frankfurt Stock Exchange under the stock symbol DTG, following its spinoff from Daimler AG.
Connected/Autonomous Vehicles and Mobility Services
- The San Francisco Municipal Transportation
Agency (SFMTA) is challenging an
application from GM
subsidiary Cruise to charge for robotaxi
rides in the city. The agency's concerns include commercial
vehicles stopping in a travel lane and failing to offer service in
low-income areas. Cruise plans to launch its commercial taxi
service in 2022, beginning in San Francisco.
- The Interstate 45 highway between Houston and Dallas is becoming a significant test route for autonomous trucking.
Electric Vehicles and Low Emissions Technology
- GM's electric delivery van
brand BrightDrop opened its first dealership last week in
Los Angeles. Brightdrop will provide its EV600 and EV410 midsize
delivery vans to its first major customers, FedEx Express and Merchants Fleet.
- Battery manufacturer LG Energy
Solution hopes to raise up to $10.8 billion in its upcoming IPO,
reflecting a market value of $59 billion for the company.
- Plant updates:
- GM is considering Lansing, Michigan for the
site of a new $2.5 billion battery cell
plant to be operated with its joint venture
partner LG Energy Solution, according to tax
incentive documents filed with the city. The automaker is also
pursuing plans to convert its Orion Assembly
plant into a hub for electric pickup trucks.
- Rivian may announce a new manufacturing
site in Georgia, according to reports that have not been confirmed by
the company.
- GM will invest over $50 million at
its Bedford, Indiana facility to build
drive unit castings for applications including the
upcoming electric Chevrolet Silverado; the
automaker plans to begin production of the electric
Silverado in early 2023 at its Factory Zero Detroit-Hamtramck
Assembly Center.
- Volvo and Northvolt
AB will open a joint battery R&D center in Sweden, and the
companies intend to announce the site of their upcoming European
battery plant in early 2022.
- GM is considering Lansing, Michigan for the
site of a new $2.5 billion battery cell
plant to be operated with its joint venture
partner LG Energy Solution, according to tax
incentive documents filed with the city. The automaker is also
pursuing plans to convert its Orion Assembly
plant into a hub for electric pickup trucks.
- Volkswagen announced a joint venture
with Umicore and a long-term agreement
with Vulcan Energy Resources Ltd., to secure
raw materials necessary to support its strategy of establishing six
European battery plants by 2030.
- Ford plans to reach 200,000 annual production
units of its all-electric Mustang
Mach-E by 2023 for North America and Europe. This
vehicle has reached sales of over 24,000 units in the U.S. as of
November 1.
- As part of its ongoing plans to establish and strengthen its supply chain for electric vehicles, GM announced partnerships with rare earth materials provider MP Materials, and advanced magnetic materials producer Vacuumschmelze (VAC).
Prepared by Julie Dautermann, Competitive Intelligence Analyst
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