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 discusses the balance
between innovation and legacy needs in EV product roll-outs. Click
HERE to subscribe to the series.
- U.S. new light-vehicle sales reached 1.36
million units in May, representing a SAAR of 15 million units,
according to preliminary estimates from GlobalData (formerly LMC Automotive). The
analysis indicates May sales were up 22.6% year-over-year, while
noting May 2022 experienced the lowest selling rate for any month
last year.
- The global light-vehicle selling rate reached
83.3 million units/year for the first four months of 2023,
according to recent analysis from GlobalData.
- A report by the U.S. Transportation
Department's Office of Inspector General found the
National Highway Traffic Safety
Administration's Office of Defects
Investigation (ODI) failed "to complete defect
investigations within the timeframe specified in its
procedures." The report reviewed a sample of investigations
conducted in 2018, 2019 and 2021. In a separate announcement,
Stephen Ridella stepped down as director of the ODI on June 3
for a role in the private sector.
- BloombergNEF's annual Electric Vehicle Outlook predicts the combined
category of battery electric vehicles (BEVs) and plug-in
hybrid electric vehicles (PHEVs) will represent
28% of new passenger vehicle sales in the U.S. by
2026.The analysis projects BEV and PHEV share will rise to
52% in China and 42% in Europe in the same time period.
[Executive summary publicly available; full report
requires subscription]
- As part of a collaboration which establishes access to
Tesla's Supercharger network beginning in
2024, GM will follow Ford in a decision to equip
EVs with the North American Charging Standard (NACS) port beginning
in 2025.
- Global lithium-battery demand will reach 5.7TWh annually by 2035, and meeting this demand will require an investment of at least $188 billion in battery cell and component plants by 2030, according to projections in BloombergNEF's Electric Vehicle Outlook.
OEMs/Suppliers
- Stellantis and GM will pay civil penalties of $235.5 million and $128.2
million, respectively, for the failure to meet U.S. fuel
economy standards for certain model years.
- GM announced over $2 billion in investments at
existing manufacturing facilities in Flint, Michigan, Arlington, Texas, Fort Wayne, Indiana and Oshawa, Ontario, to support production of
future internal-combustion engine trucks and SUVs.
- Bloomberg reports China's
BYD now sells its vehicles in 53 countries and
regions around the world, as part of a strategy to pursue growth in
international markets. The article notes BYD has not expressed
plans to enter the U.S. market.
- Former Whirlpool executive Liz Door joined Ford as chief supply chain officer effective June 12.
Electric Vehicles and Low Emissions Technology
- Tesla and its battery partner
Panasonic could receive up to $1.8 billion
in production tax credits in 2023 under provisions in the
Inflation Reduction Act, according to analysis from Benchmark
Mineral Intelligence quoted in Bloomberg.
- Toyota will invest an additional $2.1 billion in an
upcoming electric and hybrid vehicle battery factory in
Greensboro, North Carolina, bringing the
site's total investment to nearly $6 billion. Separately, the
automaker announced plans to spend nearly $50 million on
a new electric vehicle battery lab at its North American R&D
headquarters near Ann Arbor, Michigan.
- S&P Global provided a summary of
emerging battery chemistries which could
experience increased adoption resulting from efforts to avoid
potential supply constraints of materials such as lithium, cobalt
and nickel.
- China's Gotion High-Tech Co. revealed a
lithium-iron-manganese-phosphate (LMFP) battery, which could power
an EV for up to 621 miles on a single charge, according to Bloomberg.
- Ford indicated it is on track to reach its production target of
150,000 F-150 Lightning electric trucks this year.
- The U.S. buildout of Level 3 fast chargers
faces a number of uncertainties pertaining to cost, location and
usability, according to views expressed in The Wall Street Journal.
- Ascend Elements announced a billion-dollar deal to supply precursor cathode active material (pCAM) from recycled lithium-ion batteries for an undisclosed manufacturer at an upcoming plant in southwest Kentucky. The site will have the capacity to produce enough pCAM for up to 750,000 electric vehicles per year.
Automated, Autonomous or Connected Vehicles Technologies
- The California State Assembly approved a bill which could prohibit
autonomous heavy-duty trucks from being tested or
commercially operated on public roads in the state unless a human
safety driver is present in the vehicle. The bill, AB 316, is now under consideration by the
state's senate.
- North Texas has become a hub for autonomous truck testing and
pilot programs due to factors including the area's
central location on the transportation network, as well as the
state's regulatory environment.
- The California Department of Motor Vehicles issued a permit which allows Mercedes-Benz to offer its automated driving system, DRIVE PILOT, on designated highways under certain conditions without the active control of a human driver. The announcement notes the automaker is the fourth company to receive an autonomous vehicle deployment permit in California, and the first authorized in the state to sell or lease vehicles with a Level 3 automated driving system.
Market Trends and Regulatory
- A new study by the Center for Automotive
Research assessed potential upfront and recurring
dealership compliance costs which could result from the
Federal Trade Commission's proposed
Motor Vehicle Dealers Trade Regulation Rule. If
the rule is enacted, CAR estimates a median upfront cost of
$46,950, and recurring annual compliance costs of up to $50,958 per
dealer location.
- NHTSA announced a proposed rule that would require
automatic emergency braking and pedestrian
AEB systems on all new passenger cars and light trucks
within three years of the publication date of a final rule.
- EETimes reports the complexity of
automotive cyberattacks is "changing
rapidly," and requires proactive and comprehensive protection
to reduce supply chain risk.
- Law360 reports several lawmakers expressed views during a recent House Subcommittee on Communications and Technology hearing which opposed the intent by certain automakers to remove AM radio from upcoming electric vehicle models.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
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