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
- U.S. new light-vehicle sales in October
reached an estimated SAAR of 13 million units to 13.1 million
units, representing an increase from September
2021, but a decline of over 20% year-over-year.
- U.S. fleet sales reached an estimated 1.39 million units for January
– October, 42% lower than for the same period in
2019 and just 1% higher compared to the same period in
2020.
- New analysis from IHS Markit
addresses concerns over the stability of magnesium
supplies, which have recently experienced significant
price increases.
- The U.S. House of Representatives approved a bipartisan $1.2 trillion
infrastructure bill that is expected to be
signed by President Biden.
- The U.S. Department of Labor's Occupational Safety and
Health Administration (OSHA) released the Emergency Temporary
Standard (ETS) pertaining to COVID-19 vaccination
requirements for large private employers. Subsequently, a federal
appeals court in New Orleans temporarily stayed the regulation in order to pursue
additional briefing on the matter [This topic continues to
evolve].
- Ford will require the majority of its U.S. salaried
workforce to be fully vaccinated against COVID-19 by December
8.
- Autonomous truck companies Einride, Gatik and TuSimple, recently announced
updates involving collaborations with GE
Appliances, Walmart, and
UPS, respectively.
- Electric vehicles and low emissions
technology:
-
- Rivian raised its IPO price range according to
an updated filing, and it now reflects a potential
valuation of approximately $65 billion.
- GM will stop production of the Chevrolet
Bolt at its Orion Assembly Plant in Michigan for three
weeks beginning November 15.
- The U.S. Department of Energy provided $128 million to Daimler Trucks North
America, Ford Motor Co., General Motors, Paccar Inc. and Volvo
Group North America as part of its SuperTruck 3
initiative to advance electrified truck
technologies.
- The Illinois legislature recently passed a number of tax incentives for EV manufacturers as part of House Bill 1769.
- Rivian raised its IPO price range according to
an updated filing, and it now reflects a potential
valuation of approximately $65 billion.
Market Trends and Regulatory
- The Michigan Department of Environment, Great Lakes and
Energy issued a third air quality violation notice
for Stellantis' new Jeep assembly plant in
Detroit. The automaker intends to install new equipment to repair the violation
by year-end.
- U.S. borders have reopened to fully vaccinated noncitizen travelers; more detail on requirements can be found via the State Department.
OEMs/Suppliers
- Toyota reported a 33% increase to net income for the
July – September period, and raised its full-year operating
profit forecast by approximately 12% to 2.8 trillion yen for the
fiscal year ending March 31, 2022.
- Honda reported a 31% drop in its fiscal second
quarter profit, and lowered its full-year profit forecast from
$5.9 billion to $4.9 billion for its fiscal year ending March 31,
2022.The revision is due to the effects of the ongoing chip
shortage, as well as rising material costs.
- GM will invest over $46 million to upgrade its
metal stamping plant in Parma, Ohio in order to support future
vehicle programs.
- DuPont plans to acquire engineering materials maker Rogers Corp. for approximately $5.2 billion, to assist with growth opportunities in advanced auto electronics and electric vehicles.
Connected/Autonomous Vehicles and Mobility Services
- Autonomous delivery vehicle developer Nuro raised $600 million in a Series D funding
round from investors including Tiger Global Management and
Kroger.
- Alphabet's self-driving unit, Waymo, will
use lidar-equipped vehicles to start mapping New York City. Waymo has not announced
plans to test or launch autonomous vehicles commercially in the
city.
- Waymo named Arezoo Riahi as its first director of diversity, equity and inclusion. Riahi was most recently with Autodesk.
Electric Vehicles and Low Emissions Technology
- Tesla and Hertz are reported to be discussing the timetable for
fulfilling the rental car company's recent bulk order of 100,000 Tesla Model 3 sedans,
which CEO Elon Musk indicated were not part of a formal
deal.
- Nikola Corp. has set aside $125 million, and
may seek reimbursement from its founder, for a potential settlement with the U.S. Securities
and Exchange Commission over fraud allegations.
- The Department of Justice has opened an investigation into EV
startup Workhorse, according to The Wall Street Journal. The company
was previously reported to be under investigation
by the Securities and Exchange Commission.
- Fisker Inc. formed a battery supply deal with Chinese
battery maker Contemporary Amperex Technology Co. Ltd (CATL) for
its flagship model, the Fisker Ocean SUV.
- Tesla issued a recall affecting nearly 12,000 vehicles to address false collision warnings resulting in unnecessary automated emergency braking in vehicles operating its Full Self-Driving Beta software.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
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.