Analysis by Julie Dautermann, Competitive Intelligence Analyst
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
- Foley & Lardner will host a half-day
Automotive Forum on Wednesday, September 14, at
the Detroit Athletic Club to coincide with the 2022 North
American International Auto Show. Register HERE to attend the
morning forum and hear more about key business trends and legal
issues impacting the automotive industry. Please secure your seat
to this event by September 1, 2022.
- Ford will cut
approximately 2,000 salaried positions and 1,000 contract jobs in
the U.S., Canada and India, amid a broader effort to restructure
resources and costs.
- Foley & Lardner provided an overview of a number
of the key factors which impact fuel prices.
- Steven Cliff is resigning as head of
the National Highway Traffic Safety Administration
just months after assuming the role, and he will return to the
California Air Resources Board to become its executive
officer.
- A U.S. appeals court rejected a legal
challenge to a 2020 Federal Communications
Commission decision to reallocate a portion of the
5.9 GHz band which was previously designated for
the automotive industry.
- Electric vehicles and low emissions
technology:
- The U.S. Department of Energy revealed a list of
model year 2022 and early model year 2023 electric vehicles which
may be eligible for a federal tax credit of up to
$7,500 following the enactment of the Inflation Reduction
Act. It is not yet clear how many upcoming models will
qualify under the Clean Vehicle Credit's
sourcing and price cap requirements.
- The Alliance for Automotive Innovation released a statement
pertaining to the Inflation Reduction Act which
includes automotive manufacturing provisions in the new law, as
well as a map of EV and battery production locations in
the U.S.
- Over $4.8 billion has been invested in the
electric-vehicle charging industry so far this
year, according to estimates in Bloomberg
Law which include global acquisitions, debt financing and
roll-out announcements.
- Ford announced a clean
energy agreement with DTE Energy Co. which
supports the automaker's progress toward carbon
neutrality. As a result of the deal, the utility will
expand its solar infrastructure in Michigan by 70% to 650 megawatts
by 2025.
- S&P Global estimates zero-emission vehicle (ZEV) market share in Canada increased to 7.9% in the first half of 2022, compared to 5.2% in the same period in 2021.
- The U.S. Department of Energy revealed a list of
model year 2022 and early model year 2023 electric vehicles which
may be eligible for a federal tax credit of up to
$7,500 following the enactment of the Inflation Reduction
Act. It is not yet clear how many upcoming models will
qualify under the Clean Vehicle Credit's
sourcing and price cap requirements.
Market Trends and Regulatory
- Preliminary
estimates from the National Highway Traffic Safety
Administration indicate there were over 9,500 fatalities
on U.S. roads between January and March of this year, representing
the highest levels since 2002.
- NHTSA will extend the public input period for petitions by GM and Ford to obtain temporary exemptions for the inclusion of certain types of controls in automated driving system-equipped vehicles intended for limited uses such as ride-sharing and delivery services.
OEMs/Suppliers
- A number of major manufacturers and automakers recently had to
reduce or suspend production in China's
Sichuan province due to power rationing
resulting from a drought and heatwave.
- Show organizers announced the cancelation of the February 2023 Geneva International Motor Show, and the event will instead be held in Qatar in November 2023.
Connected/Autonomous Vehicles and Mobility Services
- U.S. House Reps. Debbie Dingell (D-Mich.) and Bob Latta (R-Ohio) launched the Congressional Autonomous Vehicle Caucus to pursue federal policies which facilitate the safe deployment of autonomous vehicles.
Electric Vehicles and Low Emissions Technology
- The second annual J.D. Power U.S. Electric
Vehicle Experience (EVX) Public Charging Study found customer
satisfaction with public Level 2 charging
infrastructure declined due to issues that included
unavailable or inoperable charging stations.
- The China Passenger Car Associationpredicts six million
EVs will be sold in the nation this year, representing a record
high.
- Ford will increase prices
for its F-150 Lightning electric pickup by $6,000
to $8,500 due to factors that include rising material costs.
- The U.S. Department of Transportation announced it is awarding $1.66
billion in grants to cities and states to purchase
zero-emission transit buses.
- A report in Utility
Dive indicates there is growing demand
for battery and fuel-cell electric buses,
but manufacturers are impeded by production challenges including
parts shortages of microprocessors, wiring
harnesses and electrical components.
- California-based EV subscription provider
Autonomy placed an order
valued at $1.2 billion for 23,000 EVs with 17 global
automakers.
- An area bordering parts of Chile, Bolivia and
Argentina may contain half the world's known
deposits of lithium. However, challenges
that include government negotiations, as well as the concerns of
environmentalists and activists, are presenting impediments with
accessing the deposits.
- Charging infrastructure limitations and high vehicle prices may
inhibit adoption of battery-electric EVs, according to a
Toyota executive quoted in The Wall Street
Journal who also stated "I don't think the
market is ready for what the rhetoric is saying."
- Ford will sell $1.75 billion in bonds to fund Clean Transportation projects, "specifically the design, development, and manufacture of its battery electric vehicle portfolio." The automaker expects to allocate the proceeds from the offering by the end of 2023, and indicated it has allocated approximately 75% of the previous green bond offering completed in November 2021.
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.