Foley Weekly Automotive Report – July – 2 | Foley & Lardner srl
This report helps automotive suppliers inform their legal and operational decisions to help them overcome challenges and seize opportunities.
- Production downtime in July and August has been scheduled for five GM plants and four Stellantis plants in North America due to the shortage of chips.
- DG will eliminate wireless phone charging on some SUV 2021 and 2022 due to supply constraints caused by chip shortage.
- According to anonymous sources at Bloomberg, the governments of the United States, Canada and Mexico are potentially in disagreement on the method of calculating the country of origin for certain vehicle parts, which could affect how rules of origin are introduced USMCA.
- Aptiv and Léar offer COVID-19 vaccinations on-site at their Ciudad Juárez, Mexico; providers recommend, but do not require, vaccines for their staff.
- The European Commission has proposed measures to end the sale of internal combustion engine cars by 2035 in the EU. The commission is also pursuing a 55% reduction in CO2 emissions by 2030, compared to a previous target of a 37.5% reduction.
- Toyota subsidiary company Woven planet acquired high-definition mapping startup CARMERA in support of its plan to increase investment in mobility technologies.
- Electric vehicles and low emission technology:
- The combined category of electric, hybrid and plug-in hybrid vehicles reached 8.5% of new vehicle sales in the United States in the second quarter, according to an analysis published by Cox Automotive.
- As part of its newly announced ten-year strategy, Volkswagen waits EVs will account for half of its global sales by 2030, and North America will be the “main target to increase its market share”.
- DG notified some Bolt owners 2017-2019 park outside and avoid charging at night due to potential fire hazard; the vehicles were part of an earlier recall due to a manufacturing defect in the battery modules.
- IHS Markit predicts worldwide deployment of EV charging stations will increase to a compound annual growth rate of 31%, reaching over 66 million units by 2030, with the Greater China region accounting for over 60% of growth.
- More than one million electric vehicles were sold in China in the first half of 2021, compared to sales of 1.1 million electric vehicles for the year 2020, according to the China Passenger Car Association, cited in The Wall Street Journal.
Market trends and regulation
- Used car prices rose 10.5% in June, and are up 45% compared to June 2020, accounting for over a third of the seasonally adjusted increase in all items in the latest Consumer Price Index. New vehicles are up 2% in June and 5% from June 2020. Used vehicle prices are expected to start falling from this month.
- Loyalty study of the American automotive brand of JD Power in 2021 found that consumers remained loyal to their favorite brands during in-person shopping limits during pandemic lockdowns. Subaru, Toyota, Honda, RAM and Ford dominate mass market rankings, and premium brands are led by Lexus, Porsche, Mercedes-Benz, BMW and Audi. [Press release only, no access to full report]
OEM / suppliers
- Impact on production of the semiconductor shortage – DG scheduled downtime in four factories from July 19 to August 2:Township of Lansing Delta, in Michigan; Spring Hill Assembly, in Tennessee; and Assembly of San Luis Potosí and Ramos Arizpe Assembly in Mexico. GM has also extended the downtime for CAMI Assembly in Ontario until August 16.Stellantis has programmed a downtime for Jefferson North Assembly Plant in Detroit From July 11 to August 1, impacting the production of Jeep Grand Cherokee and Dodge Durango; the plant also has a pre-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 expected to be down until the end of the month.
- DG will phase out 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. Affected models include certain 2021 Chevrolet Tahoe and Suburban and GMC Yukon vehicles and Yukon XL, as well as certain 2022 Cadillac XT5, XT6, Chevrolet Traverse and Buick Enclave vehicles.
- Nissan shutdown until the beginning of August for the production of the Altima sedan at its Canton, Mississippi, plant, and production will be reduced for various models at this plant during the first half of August.
- Volkswagen announced a new ten-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 a software platform for use in all of its vehicles by 2025. L electrification is central to Volkswagen’s strategy, including the establishment of a “battery supply chain” and the opening of six battery factories in Europe by the end of the decade.
- DG will invest $ 71 million to build a new state-of-the-art design and technology campus in Pasadena, California, which will more than double the size of its current site in North Hollywood. The new site will open towards 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 workforce in Michigan with a new site in Bay City. The company is a subsidiary of South Korean firm 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 Volvoheavy truck plant in Dublin, Virginia, ending a months-long labor dispute that had led to strikes and the rejection of three previous contract offers.
- Companies including Ford and DG to have resumption of political donations to members of Congress who voted against certification of the 2020 presidential election, after previously implementing revisions or temporary suspensions in response to the January 6 riot on Capitol Hill. After receiving negative publicity from the Lincoln Project, Toyota recently announced that its bipartisan PAC would no longer contribute to lawmakers challenging the certification of the 2020 presidential election.
Connected / autonomous vehicles and mobility services
- Continental will integrate LiDAR sensors from AEye Inc. in its autonomous driving systems. he also announced a development partnership with an autonomous truck company YouSimple.
- Toyota indicated that he was planning to increase investments and staff in his woven planet subsidiary to strengthen its competitive position in mobility technologies, including artificial intelligence.
- You’re here will introduce a monthly subscription service for its advanced driver assistance software for customers who own vehicles equipped with a “fully autonomous computer 3.0 or higher”. The “Full Self-Drive Capability” service will cost $ 199 per month, as opposed to the previous upfront charge of $ 10,000.
- the german government should implement a national approach to autonomous vehicle regulation, with a requirement that AVs be supervised by humans and operated in a defined space.
Electric vehicles and low emission technology
- DG announced the extension of its Ultium Charge 360 Electric Vehicle Charging Program for Commercial Fleet Customers in the United States and Canada. Fleet operators will have access to charging via eTransEnergy, EVgo, In-Charge Energy and Schneider Electric, as well as home installations thanks to GM’s collaboration with Qmerit.
- Lithium-metal battery supplier SES Holdings will become public in a PSPC Agreement with Ivanhoe Capital Acquisition Corp. SES, formerly known as SolidEnergy Systems, is based in Singapore and has investors including GM, Hyundai, Kia and Geely Holding Group.
- South Korea LG Chem invest 10,000 billion won ($ 8.7 billion) by 2025 to reach growth in its battery materials business and other business units. About two-thirds of the investment will go to expanding production of battery materials such as cathodes and separators.
- Electric truck manufacturer Rivien will delay production of its first vehicle for two months through September, citing the “cascading effects of the pandemic”On the construction of facilities, the installation of equipment and supply chain for vehicle components, including semiconductors.
- Global deployment of EV charging stations will increase to a compound annual growth rate of 31% to reach over 66 million units by 2030, according to a new forecast from IHS Markit. The Greater China region will account for over 60% of the growth over the decade, with Europe accounting for around 24% and North America around 16%. The type and location of charging infrastructure will vary widely by region. [Press release only, full report not publicly available]
- Saudi Arabia will receive nearly $ 20 billion in profit on its 2018 investment in the San Francisco Bay Area electric vehicle maker Lucid engines after the startup’s merger with blank check company Churchill Capital Corp. IV.
Prepared by Julie Dautermann, Competitive Intelligence Analyst