United States: Foley Weekly Automotive Report
To print this article, simply register or connect to Mondaq.com.
This report helps automotive suppliers inform their legal and operational decisions to help them overcome challenges and seize opportunities. Contact your relationship partner Foley, or John R. Trentacosta or Ann Marie Uetz, for follow-up.
- Aptiv believes that the automotive industry could experience a worldwide production loss of two to three million units in the third quarter, against a previous estimate of 1.5 million units, due to the the impact of Flea shortage and COVID-19 outbreaks in Southeast Asia.
- Toyota will reduce its production by 40% globally for a second consecutive month and reduce its production forecast for the full year by 3%, due to the shortage of chips and parts shortages caused by escalation of COVID-19 cases in Southeast Asia.
- DG informed analysts that his sales and production volumes in the second half of 2021 will be down by 200,000 units, due to worsening supply constraints for semiconductors from Southeast Asia.
- Ford will extend downtime for F-150 production in fourth week at its Kansas City assembly plant, in addition to adding downtime for the Transit van at that plant, and reducing shifts at its Dearborn Truck and Kentucky Truck plants during the week of September 13.
- Aluminum prices have increased 48% this year, and supply constraints are expected to continue until 2022, resulting from increased demand, shipping congestion and reduced production in China.
- President Biden called on the Ministry of Labor to draft rules requiring employers with more than 100 employees To mandate for COVID-19 vaccinations or weekly tests; a temporary emergency standard is expected in the coming weeks.
- new York will require all new passenger cars sold in the state to produce zero emissions by 2035, and new medium and heavy vehicles have until 2045 to meet this target.
- Continental creates a new business unit dedicated to its advanced driving assistance and range technology, and the supplier intends to pursue partnerships to enhance its existing capabilities in the space.
- Electric vehicles and low emission technology:
- Regulators in China are considering a minimum production capacity utilization rate for the nation electric vehicle sector, for the sake of coordinating resources between its production centers and managing overcapacity. China has around 300 companies involved in the manufacture of electric vehicles.
- Charging infrastructure is the ‘biggest barrier’ to electric vehicle adoption in the United States, and the nation will need an expansion of at least five to ten times its current number of public charging stations.
Market trends and regulation
- China passenger car retail sales fell 14.7% in August, the third consecutive month of declining sales after falling 6.2% in July and 5.1% in June, compared to the same period a year ago year. The drop in sales is attributed to reduced production caused by supply shortages, including the impact of high COVID-19 cases on Malaysia‘s semiconductor conditioning and testing facilities.
- Malaysian semiconductor business uniseme will close some factories for seven days after the death of three of its employees from COVID-19. The packaging and testing services company plans to cut staff when the facility reopens. About 12% of Unisem’s revenue comes from the automotive industry.
- Automakers, including GM, Ford, Volvo, BMW and Audi, have set target dates for reaching certain levels of recyclable or sustainable content in their vehicles. In some cases, automakers have switched suppliers who could not meet recycling standards.
- A group of Republican lawmakers on the Energy and Trade Committee expressed concern over the United States’ approval for Huawei buy tokens for his automotive components company. Huawei is subject to United States trade restrictions on the sale of chips and components for use in smartphones and other network devices.
OEM / suppliers
- Impact on production of the semiconductor shortage – DG will extend downtime to five North American factories in Michigan, Missouri and Mexico which produce crossovers, sedans and midsize pickups. general managers full-size pickup truck and SUV factories in Fort Wayne, Indiana; Silao, Mexico; Flint, Michigan; and Arlington, Texas, are scheduled to resume production the week of September 13. Stellantis will extend its Jeep Cherokee plant downtime by two weeks in Belvidere, Illinois, and its minivan factory in Windsor, Ontario.
- Ford will stop manufacturing cars in India, following a struggle to achieve growth in a market dominated by low-cost vehicles made by competitors such as Suzuki and Hyundai. Ford has suffered more than $ 2 billion in operating losses in India over the past decade, and CEO Jim Farley has indicated the automaker will avoid investing in markets with limited returns.
- Qualcomm reportedly made an offer of more than $ 4 billion to acquire an auto safety technology company Veoneer, surpassing a previous offer by Magna.
- ZF Employees in Marysville, Michigan, began a strike on September 9 over a dispute over union recognition. The volume of workers participating in the strike was not readily available, and the supplier noted that production was not affected.
- Ford named an elder Apple and You’re here as the new head of advanced technologies and embedded systems. Doug Field will report to President and CEO Jim Farley and lead efforts to deliver smart and connected vehicles and related services.
Connected / autonomous vehicles and mobility services
- Intel subsidiary Mobileye will start testing a autonomous taxi service in Munich next year, in partnership with German car rental company Sixt and Israeli mobility data startup Moovit.
- General Motors” the venture capital branch invested an undisclosed amount in Oculii, a developer of radar imaging software for use in autonomous vehicles.
Electric vehicles and low emission technology
- Toyota and Honda disagreed with a House proposal to provide an additional $ 4,500 in tax incentives for electric vehicles made by unions in the United States, noting that the plan would discriminate against auto workers depending on whether ‘they are unionized or not.
- The Senate’s $ 1,000 billion bipartisan infrastructure bill could lead to increased funding for electric and low-emission school buses. The US House of Representatives had previously agreed to vote on the bill by September 27; However, this commitment is not binding and the bill is expected to face significant opposition.
- German car manufacturers could potentially view sales to the United States as a method to offset the costs of electrification in their home market, as evidenced by the focus on sustainability and zero emissions at the International Motor Show in Munich last week.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
POPULAR POSTS ON: Shipping from the United States