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.
Semiconductor factories inMalaysia are expected to face volatility into next year due to the high rate of COVID-19 cases in the nation, resulting in potential supply chain disruptions for automakers.
Due to semiconductor-related parts shortages, Ford has production downtime at three North American light truck plants the week of August 30, and Stellantis has production downtime of one to two weeks at four North American plants beginning August 30.Affected models include Ford’s F-150 and Stellantis’ Ram 1500.
Mexicocautioned that the region’s automotive sector could be negatively impacted by what it views as a stricter interpretation for content requirements by the U.S. under the rules of origin in the USMCA trade pact.
Fordannounced its nonsite-dependent salaried workforce will not return to the office until January2022, instead of October, due to the increasing COVID-19 caseload in many regions.
GM has required its U.S. salaried workforce to confidentially attest to their COVID-19 vaccination status; the requirement does not apply to the automaker’s hourly workforce.
Goodyear Tire & Rubber Companyannounced an agreement to collaborate with Cupertino, California-based Plus on autonomous long-haul trucking solutions.
Waymowill expand its driver-supported autonomous ride-hailing service to San Francisco; riders can participate in the test program by downloading the Waymo One app.
Electric vehicles and low emissions technology:
Electric truck maker Bollinger Motors will expand its vehicle portfolio to offer Class 4 and Class 5 commercial trucks, in an effort to provide broader options to customers.
Magna CEO Swamy Kotagiri predicts that after 2025,50% of its sales will be from electrified powertrains for hybrids, plug-in hybrids and fully electric vehicles.
Rivianannounced a confidential submission with the Securities and Exchange Commission for a proposed public listing.
GMwill stop production of Chevrolet Bolt EVs at its Orion Assembly plant for two weeks beginning August 30 because of a battery pack shortage that resulted from an expanded recall of those vehicles due to fire risk.
Market Trends and Regulatory
In a recent interview with CNN, Ford CEO Jim Farley said that absentee rates at some of its factories can exceed 20%, with the return to a mask requirement at its U.S. plants cited as a contributing factor.
A new analysis from IHS Markit found that brand loyalty for new vehicles among U.S. consumers is at its lowest rate since August 2015, with the drop attributed to declines in dealer inventory resulting from the global microchip shortage.
Nissan will extend a production shutdown at its Smyrna, Tennessee, plant by two weeks as a result of COVID-19 cases at a microchip supplier in Malaysia.
Bosch, in a recent interview with CNBC, emphasized the importance of developing new models for semiconductor supply chains, including longer lead times and an increased stock of certain components.
Toyota will raise the price of steel materials sold to suppliers by the largest amount in over a decade, according to Nikkei Asia (subscription).
BorgWarnerinvested $10 million in Series A funding in Tennessee-based renewable energy company Enexor BioEnergy LLC; Enexor converts plastic waste into thermal energy.
According to ACT Research, raw material and labor shortages are reducing manufacturing rates for Class 5-8 trucks, in spite of high demand, with Class 8 production particularly impacted.
Huawei received U.S. approval for license applications to buy chips for its automotive component business, according to unnamed sources in Reuters. The telecommunications equipment maker is subject to U.S. trade restrictions on the sale of chips and components for use in smartphones and other network devices.
GMconfirmed a layoff at its Toledo Transmission plant that will affect 16 permanent workers and 106 temporary workers; the action intends to “align production with demand” for six-speed rear wheel drive transmissions.
Connected/Autonomous Vehicles and Mobility Services
Autonomous delivery vehicle startup Nurowill invest$40 million to build a manufacturing factory and a closed-course test track at the Las Vegas Motor Speedway.Companies, including Walmart, FedEx and Kroger, have tested Nuro’s robotic delivery vehicles.
Waymo has ended a two-year initiative to sell its lidar sensors to nonautomotive companies. The company stated that it plans to focus on developing and launching its Waymo Driver technology across its Waymo One ride-hailing unit and Waymo Via delivery unit.
A Tesla Model 3crashed into a parked Florida Highway Patrol car while the Autopilot advanced driver-assistance system was reported to be engaged; an investigation of the incident has not yet concluded.
Electric Vehicles and Low Emissions Technology
Toyotaplans to manufacture “integrated dual fuel cell modules” for hydrogen-powered Class 8 trucks from a new manufacturing line beginning in 2023 at its Georgetown, Kentucky, plant.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.