Foley Automotive Update

Analysis by Julie Dautermann, Competitive Intelligence Analyst

This update helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. Contact your Foley relationship partner, or Ann Marie Uetz, Vanessa L. Miller, or Nicholas J. Ellis, to follow up.

Key Developments

The most recent article in Foley & Lardner LLP’s Auto Trends 2023 Series provides insights into automotive-related investigations by the International Trade Commission (“ITC”). Click HERE to subscribe to the series.
Foley & Lardner shared highlights from the 2023 Automotive EV Outlook event the firm held with the Society of Automotive Analysts (SAA), which included discussion on the impact of electrification on the automotive supply chain.
A list of all-electric and plug-in hybrid electric vehicles which are eligible for a federal tax credit of up to $7,500 through funding in the Inflation Reduction Act was posted to FuelEconomy.gov. In the all-electric category, only certain GM, Ford and Tesla models qualified for the full tax credit at the time of this newsletter publication.
Foley & Lardner Partner Lynn Parins is quoted in the Law360 article, “Biden’s Accelerated EV Push Has Auto, Truck Cos. On Edge,” discussing the challenges for automakers in overcoming supply chain hurdles and getting consumer buy-in to comply with the Biden administration’s domestic manufacturing requirements for electric vehicles.
GM sold 20,670 U.S. electric vehicles in the first quarter of 2023, making it the No. 2 seller of EVs behind Tesla for this period. Ford sold 10,866 EVs during Q1, as production downtime contributed to its EV market share dropping to No. 5 behind Hyundai and Volkswagen.
Extensive limits on vehicle tailpipe emissions proposed by the U.S. Environmental Protection Agency on April 12 may significantly impact manufacturers and the automotive supply chain, according to an update from Foley & Lardner.
Foley & Lardner provided an overview of notable ramifications resulting from Michigan’s repeal of “Right-to-Work” legislation.
Foley & Lardner summarized a number of the key updates included in the National Electric Vehicle Infrastructure Standards and Requirements Final Rule.

OEMs/Suppliers

Automotive News (subscription) reports suppliers could be “more vulnerable” to a UAW strike in 2023 than in recent years, particularly if new union president Shawn Fain pursues an aggressive approach to labor negotiations with the Detroit 3 automakers later this year.
Bloomberg reports global automakers’ market share in China fell from a collective 61% in 2020 to 41% in the final quarter of 2022.The change is attributed to increased market penetration of electric vehicles and rising sales from Chinese brands.

Electric Vehicles and Low Emissions Technology

Toyota plans to launch 10 new EV models by 2026, and set a goal to sell 1.5 million battery-electric vehicles annually, while “strengthening hybrids and plug-in hybrids.”
Walmart announced plans to establish its own network of electric vehicle fast-charging stations at thousands of U.S. stores by 2030.
GM electric delivery vehicle subsidiary BrightDrop produced over 500 Zevo 600 electric delivery vans at the CAMI Assembly plant in Ontario, Canada during the first quarter of 2023.In addition, Ryder System, Inc. plans to add 4,000 BrightDrop electric commercial vans to its rental and lease fleet through 2025.
Battery materials developer Sila announced its range-boosting electric vehicle battery technology, Titan Silicon, will offer benefits that include full or partial graphite replacement. Mercedes-Benz plans to use the silicon-based anode battery technology mid-decade beginning with the G-class series.
A new whitepaper from the Energy Systems Integration Group predicts broader adoption of EVs has the potential to “create a significant new electric load,” and a “strong price signal to encourage EV charging during specific periods” may be required to align customer charging behavior with grid needs.
Ford plans to invest $1.3 billion in its Oakville, Ontario plant to produce electric vehicles and battery packs beginning in 2024.
GM’s venture capital arm led a $50 million Series B funding round into lithium extraction technology startup Energy Exploration Technologies Inc. (“EnergyX”).The companies also formed an agreement to develop EnergyX’s lithium extraction and refinery technology.
Limited production of commercial electric vans in certain European markets has presented opportunities for brands such as SAIC’s Maxus and Geely’s Farizon to increase sales.
Bloomberg reports Chinese battery maker SVotl Energy Technology plans to expand its manufacturing footprint in Europe to support the production of up to 1 million EVs by the end of the decade. According to the article, Chinese companies are “expected to dominate battery making in Europe.”

Automated, Autonomous or Connected Vehicles Technologies

Lidar maker Luminar announced its new manufacturing facility in Monterrey, Mexico began producing sensors in support of customer vehicle launches later this year.

Market Trends and Regulatory

A scarcity of shovel-ready “megasites” in the U.S. could impede efforts to build domestic factories to support new transportation and energy technologies, according to public and private sector entities interviewed by Reuters.

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