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.
- Foley & Lardner shared highlights from the firm's
Automotive Forum held on September 14th
to coincide with the return of the 2022 North American
International Auto Show.
- S&P Global Mobility predicts
U.S. new light-vehicle sales will reach 1.105
million units in September, representing a SAAR of 13.4 million
- Ford announced
inflation-related third quarter supply
costs will be approximately $1 billion higher than
anticipated. The automaker also noted that certain parts
shortages will result in 40,000 to 45,000 unfinished vehicles at
the end of the quarter.
- A number of automotive suppliers contacted by
indicated they have raised prices on parts in the range of 7% to
20%, amid high costs for energy, labor and raw materials.
- The California Air Resources Board is expected
to consider a proposal
which could ban the sale of diesel big rigs by
- Effective later this year, GM's salaried
employees will be required to work
on-site three days a week, as part of an effort to "pivot to a
more regular in-person work cycle."
- According to a recent survey by the German Association of
the Automotive Industry, 10% of companies in the nation
have cut production because of high energy costs and another 30%
are considering reducing output.
- Due to the risk of natural gas shortages and energy
rationing in Germany, Volkswagen could
shift some of its production to facilities in other regions, and Mercedes-Benz
increased parts inventory to support its plants in the U.S. and
- The National Transportation Safety Board
announced recommendations for
all new vehicles to be equipped with passive alcohol-detection
systems, advanced driver-monitoring systems, or a combination of
the two in order to limit or prevent vehicle operation by impaired
- Electric vehicles and low emissions
- A new report from Alliance
for Automotive Innovation estimates U.S. sales of battery,
plug-in hybrid and fuel cell electric vehicles reached
over 224,000 units and represented 6.6% of new light-duty
vehicle sales in the second quarter of 2022.
- BloombergNEF predicts 52% of passenger cars sold in
the U.S. will be electric vehicles by 2030, up from a
previous projection of 43%.The revision was attributed to
incentives in the Inflation Reduction Act.
- The Biden Administration approved 35 of the
EV infrastructure deployment plans submitted by states as part of
the National Electric Vehicle Infrastructure Formula
Program. This program provides over $900 million in
funding in FY22 and FY23, as part of a broader package under the
Bipartisan Infrastructure Law which makes $5 billion available over
- Hertz will order up to
175,000 EVs from GM over a five-year period in
North America, beginning with the Chevy Bolt EV and Bolt EUV in the
first quarter of 2023.
- Ford began construction
on its $5.6 billion BlueOvalCity complex in Tennessee, which is
described as the "largest, most advanced auto production
complex" in the company's history. The site will produce
batteries and EVs beginning in 2025.
- Prices for lithium carbonate in China have
more than tripled in the past year due to a combination of high
demand and production constraints, according to analysis in Bloomberg.
- GM and the Environmental Defense Fund released joint recommendations in support of federal emissions standards which would enable at least 50% of new vehicles sold by 2030 to be zero-emission models.
- A new report from Alliance for Automotive Innovation estimates U.S. sales of battery, plug-in hybrid and fuel cell electric vehicles reached over 224,000 units and represented 6.6% of new light-duty vehicle sales in the second quarter of 2022.
Market Trends and Regulatory
- Four U.S. federal agencies signed a memorandum of
understanding to coordinate on policies which support the
implementation of "low and zero carbon transportation
solutions and associated infrastructure."
- Gabe Klein was named the head of
the newly formed Joint Office of Energy and
Transportation, which will oversee projects including the
deployment of $7.5 billion to build a national electric
vehicle charging network. Klein previously had leadership
roles at transportation departments in Chicago and Washington
- According to estimates in Bloomberg,
earnings for freighters which move autos and
industrial goods have reached a two-decade high, due to a
combination of limited vessel supply and steady demand.
reports over a dozen automakers have signed agreements with
Avanci, which describes itself as a "one-stop
marketplace" for licensing patented wireless
- The Vehicle Data Access Caucus was recently formed by U.S. Rep.
Earl Carter (R-GA) to address policy issues related to data privacy
and the control of data generated by vehicles.
- Preliminary estimates from the National Highway Traffic Safety Administration indicate there were over 20,000 fatalities on U.S. roads between January and June of this year, representing an increase of 0.5% from the same period last year. The agency noted the second quarter of 2022 had a decline in fatalities following seven consecutive quarters of year-to-year increases.
- Reuters reports Toyota and Honda will reduce
production at certain plants next month, due to supply
chain constraints and shortages of parts including
- A unit of Bosch will invest approximately $160
million in a new plant in
Queretaro, Mexico, intended to focus on exports to the U.S. and
- Aptiv will acquire
Intercable Automotive Solutions, an Italy-based
provider of automotive power distribution and connection
technologies, for €595 million. The deal is expected to
strengthen Aptiv's "position as a full system supplier for
electric vehicle manufacturers."
- BorgWarner will acquire the
vehicle electrification business of Hubei Surpass Sun
Electric Co. for 410 million yuan, or roughly $57.3
million, in a deal which is anticipated to expand market
capabilities in China.
- Ford is experiencing supply shortages of model nameplates and company logo badges for certain vehicles, according to sources quoted in The Wall Street Journal.
Connected/Autonomous Vehicles and Mobility Services
- GM's autonomous driving subsidiary Cruise
plans to expand its
robotaxi service to Phoenix, Arizona and Austin, Texas in the
coming months. The business unit also intends to achieve a revenue
target of $1 billion by 2025.
- The New York Times provided an update on recent
developments in advanced driver assistance systems
(ADAS) as part of a series on the Future of
- The 2023 Lincoln Corsair crossover will become the sixth
vehicle in Ford's lineup to offer the
automaker's advanced driver assistance
- Self-driving technology developer Pony.ai will partner with Pima Community College to test autonomous vehicles with safety drivers behind the wheel in Tucson, Arizona.
Electric Vehicles and Low Emissions Technology
- A report in The Wall Street
Journal raises concerns about automakers' ability to
swiftly capitalize on growing consumer interest in EVs amid market
challenges, including limited production volumes, parts shortages
and supply chain constraints.
Dive reports supply chain constraints for building
materials such as steel and concrete may impact timelines
for building electric vehicle battery manufacturing facilities and
- U.S. e-bike sales are projected to reach three
million units annually by 2025, according to data from the Light
Electric Vehicle Association excerpted in The Wall Street
- Benchmark Mineral Intelligence estimates
over 300 new mines for graphite, lithium, nickel and cobalt
will be required by 2035 to support anticipated demand for
electric vehicle and energy storage batteries.
- Approximately 15,000 people attended The Battery Show held September 13-15
in Novi, Michigan, representing an increase of 64% from last year
and up by nearly 50% from pre-pandemic levels. According to
industry representatives quoted in Bloomberg,
the increase in attendance was attributed to an increase in market
growth and government support, including provisions in the
Inflation Reduction Act.
- Bosch cautioned the auto
industry against an over-reliance on battery cells as the only
potential power source for EVs, citing supply risks associated with
not preparing for alternative scenarios such as fuel cells.
- Cummins showcased a number of its zero-emissions
technologies at the IAA Transportation 2022 trade
show, including its fourth generation hydrogen fuel cell
engine for medium- and heavy-duty trucks and buses, as well as a
newly introduced lithium iron phosphate (LFP) battery pack.
reports manufacturers including Daimler Truck and
Volvo are pursuing the development of both
battery electric and hydrogen fuel cell
trucks, due to factors that include the difficulty of
predicting which technology will be the most cost effective and
energy efficient in the future.
- GM announced a $760
million investment in its Toledo, Ohio propulsion plant to produce
drive units used in future Ultium-based battery electric trucks.
The automaker also announced an
investment of nearly $500 million in its Marion, Indiana metal
stamping plant to support future products including electric
- A new study by Stanford University researchers published in Nature
Energy predicts rising EV ownership could increase
power demand in the western U.S. by up to 25% by 2035.The
study recommends a shift from nighttime EV charging at home to
midday hours at public charging stations when wind and solar power
- San Francisco-based TeraWatt Infrastructure, which builds EV charging infrastructure for fleets, raised $1 billion of Series A venture funding. The company plans to use the funding to expand its portfolio of commercial charging centers, beginning in the western U.S.
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