Foley Weekly Automotive Report – October 12, 2021 – Transportation
United States: Foley Weekly Automotive Report – October 12, 2021
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This report helps automotive suppliers inform their legal and operational decisions to help them overcome challenges and seize opportunities.
- New light vehicle sales in the United States in September fell to an estimated SAAR of 12 million units To 12.2 million units, representing the lowest sales pace since May 2020.
- Sales of new light vehicles in the United States for the year 2021are planned to just under 15 million units, down from a previous projection of 15.7 million unitsthrough LMC Automotive, with the impact of low inventory of new vehicles on sales which should now persist until the end of 2022 or the beginning of 2023.
- Fleet sales in the United States reached a valued 1.3 million units for January – September, 41% less than the same period in 2019 and only 3% more compared to the same period in 2020.
- IHS Markit estimates this global production of light vehicles lost 7.4 million units until the third quarter of this year, with Ford and GM experiencing the biggest production disruptions due to chip shortages.
- Deadlines for semiconductor orders increased to one average of 21.7 weeks in September, up for the ninth consecutive month.
- The Geneva International Motor Show will postpone its annual event from March 2022 to 2023, due to challenges related to the coronavirus.
- DG plans to double income to $ 280 billion by 2030, with growth supported by new models of electric vehicles, as well as lines of business such as Cruise, BrightDrop and software services.
- Electric vehicles and low emission technology:
- Stellantis will invest $ 229 million to re-equip three factories in Indiana to build eight-speed transmissions that can be used in electrified and internal combustion vehicles.
- DG will establish a new battery research and development center in its Warren Tech Center. Construction of the Wallace Battery Cell Innovation Center is expected to be completed in mid-2022.
- Lithium price have more than doubled last year, and global lithium demand is expected to quintuple by 2030.
- You’re here will move its head office from Palo Alto, California to Austin, Texas. CEO Elon Musk said the company will continue to expand into California, with the goal of increasing production by 50%.
Market trends and regulation
- Manufacturers continue to rise to the challenge of soaring steel prices, with average spot prices more than triple Last year.
- Global supply chain constraints should persist “for a good part of next year” and can hamper economic recovery. Persistent problems include component and labor shortages, high freight and raw material prices, and bottlenecks resulting from countries facing lockdowns and restrictions related to coronaviruses.
- The efforts of the Biden administration To collect semiconductor supply chain data meet the concerns of global chipmakers. Companies have been asked to voluntarily disclose information by November 8 on inventory, backlogs, delivery times, sourcing practices and major customers.
- Class 8 Truck Orders in North America 10.9% drop in September, compared to a year earlier, as manufacturers struggle to balance pent-up demand with supply chain constraints.
- ChinaThe Ministry of Industry and Information Technology has indicated that it implement evaluation measures To
regulate data sent abroad by vehicles, but did not provide details on how the assessments would be conducted.
OEM / suppliers
- Impact on production of the semiconductor shortage –
- DG will resume production before November 1 in several North American factories that have remained inactive due to the shortage of chips. The factories are San Luis Potosi Assembly in Mexico, Fairfax Assembly in Kansas and CAMI Assembly in Canada. Additionally, production of the Chevrolet Blazer at Ramos Assembly in Mexico will resume on October 18.
- Stellantis will prolong downtime until the rest of October at its Jeep cherokee crossing plant in Belvidere, Illinois. Besides, Ford confirmed downtime for the week of October 11 at its Mustang plant in Flat Rock, Michigan.
- Volkswagen will extend production cuts until October 15 for its factory Puebla, Mexico.
- Nissan confirmed downtime for two Mexican factories, with an eight-day shutdown in the state of Aguascalientes and eleven days in the state of Morelos.
- Aptiv lowered its annual sales forecast at a range of $ 15.1 billion to $ 15.5 billion, compared to a previous projection of $ 16.1 to $ 16.4 billion. The adjustment was due to a reduction in global vehicle production forecasts, as well as the continued impacts of the COVID-19 pandemic and the global semiconductor shortage.
- Construction has started of the $ 48 million
M3 Trade Center located on the site of the former Cadillac Stamping plant in Detroit. LÃ©arwill occupy nearly two-thirds of the 684,000 square foot building and provide the next
- Nissan plans to eliminate carbon dioxide emissions global manufacturing sites by 2050, using fully electric equipment powered by renewable energy and alternative fuels. In January, the automaker announced the objective of achieving carbon neutrality over the entire life cycle of its vehicles by 2050.
Connected / autonomous vehicles and mobility services
- Apple is in the early stages of technology development to enable IPhone control of vehicle functions including air conditioning, seats, speedometer and radio. This effort is aimed at expanding Apple’s onboard interface capabilities. CarPlay is currently used to interface with music, navigation, and phone calls.
Electric vehicles and low emission technology
- A Californian federal jury awarded $ 136.9 million to an elder
You’re here subcontractor after discovering he was subjected to a racist work environment at the company’s Fremont plant.
- DG announcement a strategic supplier agreement with the North Carolina-based company Wolfspeed, Inc., develop and provide silicon carbide feeders for future EVs.
- Nicolas and Canadian pipeline operator
TC Energy will be a partner to build and operate hydrogen fuel cell centers in the United States and Canada.
- Stellantis plans to retool its plant in Turin, Italy, in order to transform the site into an EV hub.
- DG will be a partner with GE renewable energy assess options for developing rare earth materials supply chains to support the production of electric vehicles and renewable energy equipment in North America and Europe.
Prepared by Julie Dautermann, Business Intelligence Analyst
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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