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 partners will cover
federal legislative and regulatory developments impacting
autonomous and electric vehicles, as well as semiconductor and
other supply chain challenges, at the OESA
Mobility Supplier Forum on August 25, 2022 at SRI
International in Silicon Valley. OESA members and guests can
register HERE to
attend.
- S&P Global Mobility projects
2022 global light-vehicle production will reach
80.8 million units, while noting a near-term
recovery of demand in Greater China is balanced against broader
indications of "deteriorating economic conditions."
- U.S. new light-vehicle inventory was estimated
at 1.12 million units at the end of June, representing a 38
days' supply, according to analysis from Cox
Automotive.
- As part of an effort to mitigate cost burdens, Reuters
reports Toyota will postpone plans to unilaterally
request lower prices from suppliers this year.
- Volkswagen Group announced the
departure of CEO Herbert Diess following a vote by the supervisory
board. Diess will be replaced by Porsche CEO Oliver Blume.
- Bosch intends to invest 3
billion euros in its semiconductor business by 2026, in areas
including testing, research and production.
- The U.S. Senate may vote this week on
legislation to provide funding for the domestic
semiconductor industry, as part of a broader
package intended to increase the nation's competitiveness with
China.
- Electric vehicles and low emissions
technology:
-
- A Foley & Lardner blog post shares key takeaways involving the
upward trend of hydrogen fuel cell patent
applications.
- Ford may eliminate 4,000 to 8,000 salaried
workers to position the company for the transition to electric
vehicles, according to unconfirmed reports in The Wall Street
Journal and Bloomberg.
- According to analysis by the
Center for Automotive Research, automakers have
announced $24 billion in EV-related investments in the
first five months of 2022, which is nearly double the
amount for the same period last year.
- Ford announced details of
its battery capacity plan, including that it has
secured 100% of the battery cell capacity required to achieve a
production target of 600,000 EVs in 2023, and 70% of the required
capacity to produce 2 million EVs by 2026.
- BloombergNEF predicts global battery prices will rise this year for the first time in over a decade, increasing slightly to an average of $135/kWh from $132/kWh in 2021, according to data excerpted in Utility Dive. The increase results from supply chain challenges, as well as inflation and rising commodity costs.
- A Foley & Lardner blog post shares key takeaways involving the
upward trend of hydrogen fuel cell patent
applications.
Market Trends and Regulatory
- GM and Ford petitioned NHTSA 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
- Continental will invest over $40
million to build a hydraulic hose plant in San Luis Potosi, Mexico,
with the intent to begin production in 2024.
- The global semiconductor shortage is described
as "more acute" in China because the
nation relies "almost entirely" on chips imported from
Taiwan, Europe and the U.S., according to a report in Reuters.
- Stellantis will terminate a
joint venture with Chinese automaker GAC (which
has been producing Jeep vehicles) due to a decision to pursue an
"asset-light" approach in the nation, as well as
"lack of progress" with previous plans to pursue a
majority share in the venture.
- Semiconductor manufacturer SkyWater Technology Inc. announced plans to invest $1.8 billion for a chip research and fabrication facility in Indiana. SkyWater serves a range of markets, including the automotive industry.
Connected/Autonomous Vehicles and Mobility Services
- ABI Research projects last-mile delivery revenue will increase from $70 million in 2022 to $670 million in 2030, according to estimates excerpted in Material Handling & Logistics. Growth opportunities are expected for autonomous delivery vehicles as companies increase scale amid growing customer interest in low-touch, quick delivery.
Electric Vehicles and Low Emissions Technology
- The U.S. Postal Service announced at least
40% of its new Next Generation Delivery Vehicles (NGDVs) and
commercial off-the-shelf (COTS) vehicles will be
BEVs, representing a significant increase from
previous targets outlined in its multi-billion-dollar initiative to
replace its fleet.
- Amazon began deliveries using custom electric delivery
vans from Rivian in over a dozen cities, with
the goal to use the vehicles in over 100 cities by year-end.
- Walmart signed an agreement
to purchase 4,500 electric delivery vans from
Canoo, with the option to purchase up to 10,000
units. Walmart is scheduled to receive the first deliveries of
Canoo's Lifestyle Delivery Vehicle in 2023.
- Panasonic will invest up to $4
billion to build a new EV battery plant in De Soto, Kansas, which
will employ up to 4,000 workers. The company received a total
incentive package valued at $829.2
million.
- Redwood Materials plans to invest $3.5
billion in a new battery materials factory outside of Reno, Nevada.
The company has EV battery partnerships with automakers including
Volkswagen and Toyota.
- GM is partnering with
EVgo and Pilot to install 2,000
fast chargers at up to 500 Pilot and Flying J locations, and the
first chargers will be operational early next year.
- Federal Highway Administration officials and emergency
responders quoted in Transport
Topics highlighted the need for increased training to
effectively extinguish EV battery fires.
- The Wall Street
Journal reports warehouse developers are experiencing more
requests to install charging stations at distribution
centers, signaling growing interest in electrification
among logistics companies.
- The New York
Times featured a number of companies which are beginning
to increase production to expand the testing process for
next-generation battery cells designed to improve
charging speed and vehicle range.
- The U.S. Energy Department intends to provide a $2.5 billion conditional loan to a joint venture between GM and LG Energy Solution to help fund upcoming battery cell manufacturing facilities in Ohio, Tennessee and Michigan.
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.