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Analysis by Julie Dautermann, Competitive Intelligence
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 & LardnerLLP
Partners Nicholas Ellis and Vanessa Miller are quoted in the
Automotive News article, “Stellantis’ course
change not a total victory for suppliers,” which looks at
Stellantis’ reversal of changes to terms for North America that
it imposed on suppliers earlier this year.
- U.S. new light-vehicle sales in
May are forecast to reach a
SAAR of 13.6 million units, representing a decline
of 3.3 million units from the same period last year, according to
projections by J.D. Power and LMC
reports auto suppliers “highly reliant” on
gasoline-powered vehicles may increasingly pursue
leveraged buyouts and merger and acquisition deals
amid the industry’s shift to electrification.
- Toyota and Honda finished
first and second in Plante Moran’s North American
Automotive OEM-Supplier Working Relations Index, and GM held
third place, which is consistent with results from last year.
- Foley & Lardner attorneys Mark Neuberger
and Katelynn Williams shared a number of best practices for automotive employers to
consider in response to current trends in union
- Foley & Lardner attorneys Gary Solomon and
Brooke Bahlinger shared key takeaways from the AmericaMakes:
RAPID + TCT Additive Manufacturing Conference held in
- The average age of light vehicles on U.S.
roads reached 12.2 years,
representing a record high and the fifth consecutive year of
- Electric vehicles and low emissions
- Stellantis and Samsung will invest over
$2.5 billion in an electric-vehicle battery plant in Kokomo,
Indiana. The announcement represents the automaker’s second EV
plant in North America, and it is expected to begin production in
- Hyundai will invest $5.5
billion and employ up to 8,100 workers at a new EV manufacturing
site in Georgia that is expected to begin
operations in 2025.This represents the automaker’s first U.S.
plant dedicated to producing electric vehicles. Hyundai and Kia
also announced plans to invest
$16.5 billion through 2030 for EV production in South
- Up to 30% of North America’s upcoming gigafactory
annual capacity could be at risk by 2025 due to the
potential for construction delays and operational inefficiencies,
according to analysis by McKinsey &
Company. The analysis also projects global EV demand will reach
approximately 40 million units by 2030, and the industry will need
200 new gigafactories worldwide to support this
- The newly launchedCoalition for
American Battery Independence intends to seek federal
policies supporting U.S.-based processing and production of
batteries and battery components. The coalition includes
automakers, lithium producers and EV startups, and it will be
administered by energy lobbyist Boundary Stone Partners.
- Stellantis and Samsung will invest over
Market Trends and Regulatory
- Analysis from S&P Global
predicts “above average” demand for commercial
vehicle replacement parts in response to the increased age
of vehicles on the road.
- The National Highway Traffic Safety Administration estimates
U.S. traffic fatalities reached 42,915 in 2021,
representing an increase of 10.5% from 2020 and the highest number
of fatalities since 2005.
- The average retail price
for regular unleaded gas reached $4.60 a gallon in
the U.S. during the week of May 23, compared to $3.02 per gallon at
the same time last year. Gasoline recently surpassed an average
of $4 per gallon in every U.S. state for the first time.
- Toyota further reduced its global
production plan for June due to parts shortages and the lingering
effects of COVID-19 lockdowns in China.
- Volkswagen and Tesla plan to
maintain “closed loop” systems to isolate workers at
their Shanghai plants until June 10, according to a report from Bloomberg.
- Lear will acquire
I.G. Bauerhin, a German supplier of
temperature-controlled seats and steering wheels, for €140
million. The acquisition is expected to complement existing
products and expand capabilities into active cooling.
- Meritorwill acquire the
commercial vehicle business of Siemens for
approximately €190 million, in a deal that is expected to
expand its electric solutions ahead of its upcoming acquisition by
Connected/Autonomous Vehicles and Mobility Services
- Bosch and WeRide will jointly develop
autonomous driving software for OEM customers in the Chinese
- Argo AI is testing driverless
rides without human safety operators behind the wheel in Miami,
Florida and Austin, Texas.
- As part of a strategy emphasizing data transparency to expand
customer trust, Porsche developed
privacy settings allowing drivers to stop sharing
personal data with the company.
Electric Vehicles and Low Emissions Technology
- Global automakers are losing market share in
China to domestic electric vehicle brands,
according to a report in Reuters.
- The percentage of consumers indicating they are
“very likely” to consider an EV for their next purchase
or lease reached 24%, representing an increase of four
percentage points from last year, according to the J.D. Power 2022 U.S.
Electric Vehicle Consideration (EVC) Study. [Press release
only, full report not publicly available]
- The Wall Street
Journal reports several states may need to improve and
streamline their procedures for using federal funds in order to
accelerate the availability of
EV charging infrastructure.
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.
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