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.
- Production downtime during July and August has
been scheduled for
five GM plants and four Stellantis
plants in North America due to the chip
- GM will eliminate
wireless phone charging on certain 2021
and 2022 SUVs because of supply constraints caused by the
- According to unnamed sources in Bloomberg, the
governments of the U.S., Canada and Mexico are potentially in
disagreement on the approach to calculating the country of
origin for certain vehicle parts, which
could impact how rules of origin are phased in under
- Aptiv and Lear are offering
vaccinations at their facilities in Ciudad Juarez,
Mexico; the suppliers are recommending, but not requiring,
vaccines for their workforces.
- The European Commission proposed measures to
end the sale of cars with internal combustion engines by
2035 in the EU. The commission is also pursuing a 55%
reduction of CO2 emissions by 2030, from a previous target of a
- Toyota subsidiary Woven
high-definition mapping startup CARMERA in support
of its plan to increase investment in mobility technologies.
- Electric vehicles and low emissions
- The combined category of electric vehicles, hybrids and
plug-in hybrids reached 8.5% of second quarter U.S. new vehicle
sales, according to an analysis published by Cox Automotive.
- As part its newly announced 10-year strategy,
Volkswagen expects EVs to represent half
of its global sales by 2030, and North America will be the
"main focus to grow its market share."
- GM notified some
2017-2019 Bolt owners to park outside and avoid
charging overnight due to potential fire risk; the
vehicles were part of an earlier recall due to a manufacturing
defect in the battery modules.
- IHS Markit predicts
global deployment of EV charging stations will
increase at a compound annual growth rate of 31%, to reach
more than 66 million units by 2030, with the Greater China
region accounting for over 60% of the growth.
- Over one million electric vehicles were sold in China in the first half of 2021, compared to full-year 2020 sales of 1.1 million EVs, according to the China Passenger Car Association, as quoted in The Wall Street Journal.
- The combined category of electric vehicles, hybrids and plug-in hybrids reached 8.5% of second quarter U.S. new vehicle sales, according to an analysis published by Cox Automotive.
Market Trends and Regulatory
- Used car prices increased by 10.5% in June,
and are up 45% compared to June 2020, accounting
for over one-third of the seasonally adjusted all items increase in
the latest Consumer Price Index.
New vehicles were up by 2% in June, and by 5% compared to June
2020.Used vehicle prices are predicted to start
trending downward beginning this month.
- J.D. Power's 2021 U.S. Automotive Brand Loyalty Study found that consumers remained loyal to their preferred brands during limits on in-person shopping during pandemic lockdowns. Subaru, Toyota, Honda, RAM and Ford lead mass market rankings, and premium brands are led by Lexus, Porsche, Mercedes-Benz, BMW and Audi. [Press release only, no access to full report]
- Production impact of the semiconductor shortage
- GM scheduled downtime
at four plants from July 19 until August 2:Lansing Delta
Township, in Michigan; Spring Hill
Assembly, in Tennessee; and San Luis Potosi
Assembly and Ramos Arizpe Assembly in
Mexico. GM also extended downtime for CAMI
Assembly in Ontario until August
16.Stellantis has scheduled downtime
for Detroit's Jefferson North Assembly Plant
July 11 through August 1, impacting production of the Jeep Grand
Cherokee and Dodge Durango; the plant also has a previously
scheduled shutdown for maintenance the week of August
2.Belvidere Assembly Plant in Illinois,
Toluca Assembly Plant in Mexico and
Windsor Assembly Plant in Ontario are scheduled to
be down through the end of the month.
- GM will eliminate
wireless phone charging on certain 2021 SUVs for the remainder of
the 2021 model year, and on a temporary basis for certain 2022
model year SUVs. Impacted models include certain 2021 Chevrolet
Tahoe and Suburban and GMC Yukon and Yukon XL vehicles, as well as
certain 2022 Cadillac XT5, XT6, Chevrolet Traverse and Buick
- Nissan scheduled downtime
into the beginning of August for production of the Altima sedan at
its Canton, Mississippi, plant, and output will be
reduced for various models at this plant during the first half of
- GM will eliminate wireless phone charging on certain 2021 SUVs for the remainder of the 2021 model year, and on a temporary basis for certain 2022 model year SUVs. Impacted models include certain 2021 Chevrolet Tahoe and Suburban and GMC Yukon and Yukon XL vehicles, as well as certain 2022 Cadillac XT5, XT6, Chevrolet Traverse and Buick Enclave vehicles.
- Volkswagen announced a new 10-year strategy
called New Auto to support its efforts to transform into a
"software-driven mobility company. "The company
will invest 73 billion euros ($86.4 billion) in future
technologies between 2021 and 2025, and intends to develop one
software platform for use in all its vehicles by
2025.Electrification features prominently in Volkswagen's
strategy, including the establishment of a "controlled battery
supply chain" and the opening of six battery plants in Europe
by the end of the decade.
- GM will invest
$71 million to build a new advanced design and technology
campus in Pasadena, California, that will more than double
the size of its current site in North Hollywood. The new site will
open toward the end of 2022. The automaker currently employs 65 to
70 people at its current design site.
- Semiconductor wafer manufacturer SK Siltron
CSS will invest
$300 million and more than double its Michigan
headcount with a new site in Bay City. The company is a
subsidiary of South Korea's SK Siltron, and manufactures a
specialty wafer for use in semiconductor power components for end
markets, including electric vehicles.
- The UAW narrowly ratified a
six-year labor agreement at Volvo's heavy
truck plant in Dublin, Virginia, ending a months-long labor dispute
that had led to strikes and the rejection of three previous
- Companies including Ford and GM have resumed political donations to members of Congress that voted against the certification of the 2020 presidential election, after previously implementing reviews or temporary cessations in response to the Jan. 6 Capitol riot. After receiving negative publicity from the Lincoln Project, Toyota recently announced that its bipartisan PAC will no longer contribute to lawmakers that contested the certification of the 2020 presidential election.
Connected/Autonomous Vehicles and Mobility Services
- Continental will integrate LiDAR
sensors from AEye Inc. into its autonomous driving
systems. AEye also announced a
development partnership with autonomous truck company
- Toyota indicated that it plans to increase
investment and headcount in its Woven
Planet subsidiary to enhance its competitive position in
mobility technologies, including artificial
- Tesla will introduce a
monthly subscription service for its
advanced driver assistance software for customers
who own vehicles equipped with "Full Self-Driving computer 3.0
or above." The "Full Self-Driving capability"
service will cost $199 per month, as opposed to the previous
upfront charge of $10,000.
- The German government is expected to implement a nationwide approach to autonomous vehicle regulation, with a requirement for AVs to be overseen by humans and operated in a defined space.
Electric Vehicles and Low Emissions Technology
- GM announced the
expansion of its Ultium Charge 360 electric-vehicle
charging program to commercial fleet customers in the U.S.
and Canada. Fleet drivers will have access to charging through
eTransEnergy, EVgo, In-Charge Energy and Schneider Electric, as
well as in-home installations through GM's collaboration with
- Lithium-metal battery supplier SES Holdings will go public in a
SPAC deal with Ivanhoe Capital Acquisition Corp.
SES, formerly known as SolidEnergy Systems, is
based in Singapore and has investors that include GM, Hyundai, Kia,
and Geely Holding Group.
- South Korea's LG Chem will invest 10
trillion won ($8.7 billion) through 2025 to achieve
growth in its battery materials operations and
other business units. Approximately two-thirds of the investment
will be dedicated to expanding production of battery materials such
as cathodes and separators.
- Electric truck maker Rivian will delay
production of its first vehicle by two months to September,
citing the "cascading effects of the
pandemic" on facility construction, equipment
installation and the supply chain for vehicle components,
- Global deployment of EV charging stations will
increase at a compound annual growth rate of 31% to reach
more than 66 million units by 2030, according to a new
forecast by IHS Markit. The
Greater China region will account for over 60% of growth during the
decade, with Europe representing approximately 24% and North
America at roughly 16%. Charging infrastructure type and location
will vary significantly by region. [Press release only, full
report not publicly available]
- Saudi Arabia will receive a profit of almost $20 billion on its 2018 investment in San Francisco Bay Area EV maker Lucid Motors after the startup completes a merger with blank check company Churchill Capital Corp. IV.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
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