Foley Weekly Automotive Report – November 23, 2021 – Transportation
United States: Foley Weekly Automotive Report – November 23, 2021
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- LMC Automotive estimates that 446,400 light vehicles were delivered in the third quarter in Canada, which represents a decrease of 12% compared to the same period last year, and 15% less than in 2019.
- Ford announced a partnership with a semiconductor manufacturer based in the United States GlobalFoundries Inc. to develop chips under a deal that could include joint US production in the future. In a recent appeal to investors,
DG also declared its intention to pursue strategic partnerships with semiconductor manufacturers.
- Honda asks its suppliers to reduce carbon emissions by 4% per year, as part of an effort to achieve a net zero supply chain.
- Stellantis will demand his U.S. hired workforce will be fully vaccinated against COVID-19. Employees should receive their final dose by January 5, unless they have received medical or religious relief.
- The Supreme Court of the United States refused to hear calls from
Volkswagen related to lawsuits brought by officials in three states seeking damages resulting from violations of the automaker’s vehicle emissions.
- JD Power The latest wholesale market update found that used vehicle prices through October were on average 37% higher compared to the same 10-month period in 2020.
- Qualcomm will provide chips for BMW’s self-driving cars, with the aim of expanding revenue streams beyond mobile devices.
- Bloomberg reports that
Apple has the internal objective of launching an autonomous vehicle within the next four years.
- Electric vehicles and low emission technology:
- Several industry experts cited in Forbes warned that the world
lithium supplies will not be sufficient to meet projected demand for electric vehicles.
- According to IHS Markit, the $ 1.2 trillion infrastructure package will support up to 66% of the country’s electric vehicle charging growth through 2026.
- Ford, GM, Jaguar Land Rover,
Mercedes-Benz, and Volvo cars are among the car manufacturers who are committed to working sell only zero emission vehicles by 2040, following the commitments of the United Nations Conference on Climate Change (COP26) in 2021.
- Chevrolet Bolt production at GM’s Lake Orion assembly plant will be down for the remainder of the calendar year as the automaker continues to work on the vehicle battery-related recall.
- The California Energy Commission (CEC) approved a three-year, $ 1.4 billion plan to support the construction of the state’s zero-emission automotive infrastructure. The majority of funding will be devoted to hydrogen charging or refueling stations.
- Accumulation fuel cell electric vehicles (FCEV) sales in the US passenger transport market have only reached 12,000 units since 2006, according to analysis by LMC Automotive. One of the main obstacles to US adoption is the limited number of hydrogen refueling stations, the majority of which are clustered near Los Angeles and San Francisco.
- Several industry experts cited in Forbes warned that the world
Market trends and regulation
- According to the Bureau of Labor Statistics, new vehicle prices have increased by 9.8% in the last twelve months, reflecting the largest 12-month increase since the period ending May 1975. Overall, the Consumer Price Index rose 6.2% in October from a year ago. which represents the largest 12-month increase since November 1990.
- A divided federal appeals court dismissed parts of the 2016 greenhouse gas emissions and fuel economy standards for heavy and medium trailers, noting that trailers are not self-propelled 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 said he would continue to seek a favorable outcome on the US bill that would offer
consumer tax credit for electric vehicles which are made by unions in the USA.
- The Montreal International Auto Show is scheduled to take place Jan. 21-30, 2022, according to an update from the show’s organizers.
- Nine governors sent a letter to congressional leaders urging swift action to approve full funding of the Creating Useful Incentives for Semiconductor Production (CHIPS) for U.S. Law, in order to support national semiconductor production, including “mature node” semiconductors which are of critical importance to the automotive industry.
- The US Environmental Protection AgencyAutomotive Trends’ annual report found that new vehicle fuel consumption averaged 25.4 miles per gallon for the 2020 model year, a new high. However, the Detroit Three automakers produced the most emissions and had the worst MPG ratings of all major producers during the 2020 model year.
OEM / suppliers
- Impact on production of the semiconductor shortage –
- DG will temporarily cease offering the option of heated seats and steering wheels in much of its range; However, the feature will be available through a modernization process by mid-2022.
- Stellantis will lay off 400 workers at its Jeep Cherokee SUV plant in Belvidere, Illinois starting in January.
- Toyota plans to return to normal production levels at its factories in Japan for the first time in seven months.
- Parts shortages are having a huge impact on truck fleets, according to the American Trucking Associations.
- ZF will extend its partnership with
Microsoft to move all its business, production and industrial processes to the Azure cloud platform.
- Toyota invest $ 6 million over the next five years to expand vehicle testing to American Center for Mobility in Ypsilanti, Michigan.
Connected / autonomous vehicles and mobility services
- Waymo will extend its partnership with
UPS to include autonomous movement of goods with Class 8 trucks as part of a test in Texas.
- Autonomous Truck Technology Company Embark began trading on the Nasdaq after completing a merger with a blank check company.
- Autonomous truck start Kodiak roboticsraised $ 125 million in an oversubscribed Series B funding round.
- A merger agreement has been terminated between the autonomous truck tech company More and ad hoc acquisition company Hennessy Capital Investment Corp. V, as a result of “recent developments in the regulatory environment outside the United States”.
Electric vehicles and low emission technology
- Following an initial public offering in the United States, which is currently the most important since 2014, Rivien is reportedly planning a number of projects, including investing in a stand-alone battery plant. Separately, it was announced that Ford and Riviencanceled their plan to jointly develop an electric vehicle.
- You’re here will invest more than $ 1 billion in its new plant in Austin, Texas, and construction is expected to be completed by the end of this year.
- New analysis of The Wall Street Journal find
Significant cost differences for fully recharging electric vehiclesin various parts of the United States
- Toyota will invest $ 240 million for a hybrid production line at its West Virginia manufacturing facility. Separately, the automaker recently said that large parts of the world are not prepared for zero emission vehicles with regard to charging infrastructure, economy and customer readiness.
- The market value of Lucid group recently hit $ 89.9 billion, overtaking Ford and approaching the value of General Motors. Lucid forecasts a 2022 production target of 20,000 electric vehicles.
- electric vehicle company Canou will move its headquarters from California to Bentonville, Arkansas. The decision was attributed to the opportunity for workforce development and quality of life.
- general managers Luminous Drop the unit announced that the car rental company
Merchant fleet plans to expand its order for an additional 5,400 vehicles, reaching a total of 18,000 BrightDrop electric delivery vans.
- Due to supply chain constraints, Lordstown will delay the start of production of electric vans by a quarter until the third quarter of 2022.
Prepared by Julie Dautermann, Competitive Intelligence Analyst
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