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Key Developments
- Recent analysis from Foley &
Lardner partners addresses the potential impact of the
USMCA's panel on Automotive Rules of Origin to
North American manufacturers.
- U.S. new light-vehicle prices
increased 12.2% and used vehicle prices increased
40.5% in January 2022 compared with January 2021,
according to the most recent Consumer Price Index. As a result of persistent
inventory shortages, The Wall Street Journal also noted
that certain vehicle models are experiencing significant value
increases, instead of depreciating after purchase.
- New-vehicle inventory reached 1.08 million units at the end of
January, representing a 37 days'
supply industrywide.
- U.S. fleet sales were estimated at over 97,000 units in January,
representing a decline of 36% compared to the same period last
year.
- The Center for Automotive Research commented that the Ambassador
Bridge traffic blockade could contribute to decisions by
automakers to source certain parts locally. Toyota
and several automakers reported February 16 that production levels
had normalized after protests against COVID-19 restrictions halted
bridge traffic for nearly one week.
- The EPA is expected to reissue a waiver under the Clean
Air Act allowing California to pursue its own
tailpipe greenhouse gas emission standards and ZEV mandates.
- The industry continues to see partnerships for autonomous
trucking technology: Knight-Swift Transportation
will incorporate technology from
autonomous-trucking company Embark into its
fleet. Waymo and C.H.
Robinson will collaborate on multiple autonomous trucking pilots in
Texas. Waymo also recently announced an extension
of its partnership with J.B. Hunt
Transport, focused on autonomous freight operations in
Texas.
- Electric vehicles and low emissions
technology:
-
- The Biden administration announced details for awarding federal funds
to states as part of the $5 billion program to
build a national network of EV charging stations,
as part of the 2021 infrastructure
legislation. Michigan is expected to receive
$110 million over a five-year period to
develop EV charging stations, beginning with $16.3 million this
year.
- Nissan will invest $500 million to transform its
Canton, Mississippi plant into a "center for EV manufacturing
and technology," and the site will produce two new EVs
beginning in 2025.
- Ford started deliveries of its new all-electric
E-Transit cargo van for customers including
Walmart. The E-Transit van is the automaker's
second all-electric vehicle, following the launch of the Mustang
Mach-E.
- GM plans to resume Chevy Bolt
electric vehicle production the first week of April, following a
shutdown that began in the third quarter last year following a product recall.
- Stellantis will recall nearly 20,000 Chrysler Pacifica Hybrid minivans from the 2017 and 2018 model years due to potential fire risks.
- The Biden administration announced details for awarding federal funds
to states as part of the $5 billion program to
build a national network of EV charging stations,
as part of the 2021 infrastructure
legislation. Michigan is expected to receive
$110 million over a five-year period to
develop EV charging stations, beginning with $16.3 million this
year.
Market Trends and Regulatory
- Korean brands earned three of the top four rankings in
J.D. Power's most recent U.S. Vehicle Dependability
Study, and Japanese brands dominated Consumer
Reports' 10 Top Picks of 2022.
- The National Highway Traffic Safety Administration issued a final rule allowing adaptive driving beam (ADB) headlights on new vehicles. New ADB lights are expected to first be used in higher-cost vehicles, with market penetration increasing as the price of the technology declines.
OEMs/Suppliers
- Ford and GM warned dealerships they could lose future
vehicle inventory as a result of charging consumers more than the
manufacturer's suggested retail price.
- Toyota lowered its fiscal year sales forecast to 8.25
million vehicles from a previous projection of 8.55 million
vehicles, due to supply constraints caused by the chip
shortage and COVID-19 cases.
- Honda reported double-digit net profit
declines in its October-December earnings results, and remarked on the challenge of projecting sales
volumes amid the chip shortage.
- BMW acquired a majority stake in its Chinese joint venture, BMW Brilliance Automotive, in a move that is intended to increase profits. China recently phased out restrictions that had prohibited foreign manufacturers from majority ownership in joint ventures.
Connected/Autonomous Vehicles and Mobility Services
- Intel's Mobileye will partner with Benteler EV
Systems and Beep to launch autonomous
electric shuttles in the U.S. in 2024.
- Jaguar Land Rover will partner with NVIDIA to
develop software-based technology for its vehicles beginning in
2025.
- GM and its autonomous technology business unit Cruise formally petitioned the National Highway Traffic Safety Administration (NHTSA) to build and launch the Cruise Origin, which has been designed to operate without a human driver.
Electric Vehicles and Low Emissions Technology
- Recent transactions–
-
- BorgWarner will acquire Tianjin, China-based
Santroll Automotive Components, a carve-out of
Santroll's eMotor business, in a deal valued at over $220
million.
- American Axle will invest $15 million in Autotech
Ventures, a Silicon Valley venture capital firm focused on
electrification and mobility companies in applications including
global ground transportation.
- GM will double investment in its Climate
Equity Fund to $50 million. The automaker established the
fund eight months ago, in an effort to help close equity gaps in
the transition to electric vehicles.
- CelLink, a California startup that has
developed a new method of connecting battery cells and packs, raised $250 million of Series D venture
funding in a deal led by Whale Rock Capital Management,
and investors including Robert Bosch Venture Capital, BMW i
Ventures and Lear.
- BorgWarner will acquire Tianjin, China-based
Santroll Automotive Components, a carve-out of
Santroll's eMotor business, in a deal valued at over $220
million.
- China-based Apple manufacturing partner Luxshare
Precision Industry is forming a joint venture with
Chery New Energy to develop electric vehicles. A
number of electronics manufacturers and technology companies have
announced plans to enter the EV market, including Foxconn and Baidu.
- Ford is reported to be considering ways to separate
its electric vehicles operations, such as creating a distinct EV
business internally.
- Toyota will invest $90 million in two components
plants in West Virginia and
Tennessee, in order to expand production of
hybrid transaxles and related parts.
- Ford and Volvo will work with
battery recycling startup Redwood Materials in
California to collect and recover materials from end-of-life
electric and hybrid batteries.
- Australian company Tritium DCFC Ltd. plans to build electric-vehicle charging
stations at its first U.S. manufacturing facility in
Tennessee.
- Burning electric vehicle batteries may have
prolonged a fire aboard a cargo ship carrying thousands of
cars, including Porsches and Bentleys.(The cause of the fire
was not identified at the time of this news update.)
- Due to numerous infrastructure challenges, light vehicles are not expected to be a significant market opportunity for hydrogen in the near future.
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.