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.
LMC Automotiveestimates that 446,400 light vehicles were delivered in the third quarter in Canada, representing a decline of 12% compared to the same period last year, and 15% lower than in 2019.
Fordannounced a partnership with U.S.-based semiconductor manufacturer GlobalFoundries Inc. to develop chips in an agreement that could include joint U.S. production in the future. In a recent investor call, GM also stated that it intends to pursue strategic partnerships with semiconductor manufacturers.
Honda is asking its suppliers to cut carbon emissions by 4% annually, as part of an effort to achieve a net-zero supply chain.
Stellantis will require its U.S. salaried workforce to be fully vaccinated against COVID-19. Employees must receive their final dose by January 5, unless they have received a medical or religious exemption.
The U.S. Supreme Courtrefused to hear appeals by Volkswagen related to lawsuits filed by officials in three states that are seeking damages resulting from the automaker's vehicle emissions violations.
J.D. Power’s most recent Wholesale Market Update found that used vehicle prices through October were on average 37% higher when compared to the same 10-month period in 2020.
Qualcommwill supply chips for BMW’s autonomous cars, in an effort to expand revenue streams beyond mobile devices.
Bloomberg reports that Apple has an internal target to launch an autonomous vehicle in the next four years.
Electric vehicles and low emissions technology:
Several industry experts quoted in Forbes warned that global lithium supplies will not be sufficient to meet projected EV demand.
Ford, GM, Jaguar Land Rover, Mercedes-Benz, and Volvo Cars are among the automakers that have pledged to work toward selling only zero-emissions vehicles by 2040, following commitments from the 2021 United Nations Climate Change conference (COP26).
Chevrolet Bolt production at GM’s Lake Orion Assembly plant will be down the remainder of the calendar year as the automaker continues work on the vehicles’ battery-related recall.
The California Energy Commission (CEC) approved a three-year $1.4 billion plan to support the state’s zero-emissions vehicle infrastructure build-out. The majority of the funding will be dedicated to charging stations or hydrogen refueling.
Cumulative fuel cell electric vehicles (FCEV) sales for the U.S. passenger market have only reached 12,000 units since 2006, according to analysis from LMC Automotive. A key barrier to U.S. adoption is the limited number of hydrogen refueling stations, as the majority are clustered near Los Angeles and San Francisco.
Market Trends and Regulatory
According to the Bureau of Labor Statistics, new vehicle prices rose by 9.8%over the past twelve months, reflecting the largest 12-month increase since the period ending May 1975.Overall, the consumer-price index increased by 6.2% in October compared to one year ago, representing the largest 12-month increase since November 1990.
A divided federal appeals court has thrown out portions of the 2016 greenhouse gas emissions and fuel-economy standards for heavy- and medium-duty trailers, noting that the trailers are not self-propelling and cannot be regulated as motor vehicles.
Following a White House meeting with Canadian Prime Minister Justin Trudeau and Mexican President Andrés Manuel López Obrador, Trudeau indicated he will continue pursuing a favorable outcome concerning proposed U.S. legislation that would offer consumertax credits for electric vehicles that are union-made in the U.S.
The Montreal International Auto Show is scheduled to proceed January 21-30, 2022, according to an update from show organizers.
Nine governors sent a letter to Congressional leadership urging swift action to approve full funding of the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act, in order to support domestic production of semiconductors, including “mature node” semiconductors that are critically important to the auto industry.
The U.S. Environmental Protection Agency’s annual Automotive Trends Report found that new vehicle fuel economy reached an average of 25.4 miles per gallon for the 2020 model year, representing a new high. However, the Detroit Three automakers produced the most emissions and had the worst MPG ratings of all major producers in model year 2020.
Autonomous truck startup Kodiak Robotics raised $125 million in an oversubscribed Series B funding round.
A merger deal was terminated between autonomous truck technology company Plus and special-purpose acquisition company Hennessy Capital Investment Corp. V, as the result of "recent developments in the regulatory environment outside of the United States."
Electric Vehicles and Low Emissions Technology
Following a U.S. IPO, which is currently the largest since 2014, Rivian is reported to be planning a number of projects, including investing in a stand-alone battery plant. Separately, it was announced that Ford and Rivian have canceled plans to jointly develop an electric vehicle.
Teslawill invest over $1 billion in its new factory in Austin, Texas, and construction is scheduled to be completed by the end of this year.
New analysis from The Wall Street Journal found significant cost differences to fully charge EVs across various regions in the U.S.
Toyotawill invest $240 million for a hybrid production line at its West Virginia manufacturing plant. Separately, the automaker recently stated that large parts the world are not prepared for zero-emissions vehicles in regards to charging infrastructure, economics and customer readiness.
EV company Canoowill relocate its headquarters from California to Bentonville, Arkansas.The decision was attributed to the opportunity for workforce development and quality of life.
GM’s BrightDrop unit announced that vehicle leasing company Merchants Fleet plans to expand its order by an additional 5,400 vehicles, reaching a total of 18,000 BrightDrop electric delivery vans.
Due to supply chain constraints, Lordstownwill delay the start of its electric pickup production by one quarter to the third quarter of 2022.
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.