United States: Foley Weekly Automotive Report
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- New American Vehicle average transaction prices reached $ 46,329 in November and is up more than 13% from November 2020.
- To strengthen global semiconductor supply chains, Stellantis partner with the contract manufacturer Foxconn design semiconductors for use in the automaker’s vehicles by 2024, and Bmw signed a long-term agreement with Inova semiconductors and Global Foundries Inc. to ensure a supply of “several million” chips per year for use in on-board lighting systems.
- Software-based services are increasingly an area of interest for automakers, but it is not clear whether consumers will be willing to pay for software subscriptions. By 2030, DG plans to earn up to $ 25 billion in annual revenue from software-based products and services, and Stellantis has announced its goal of generating up to € 20 billion in annual revenue.
- the Automotive Research Center has provided recent comments on automobile industry greenhouse gas performance, as well as the use of EPA carbon credits.
- Intelligence plans an IPO next year for its autonomous vehicles business unit Mobileye. Intel acquired the company in 2017 for around $ 15 billion.
- Electric vehicles and low emission technology:
- the Biden administration announced its strategy of building a national network of charging stations for electric vehicles.
- More than 50 U.S. power companies are teaming up to build a coast-to-coast charging network for electric vehicles by the end of 2023, as part of the new National Electric Highway Coalition.
- President Joe Biden signed a decree in support of an objective to be achieved zero net greenhouse gas emissions across federal government operations by 2050, which includes the the requirement that federal agencies only purchase zero-emission vehicles by 2035.
- the Alliance for Automotive Innovation has published its Recommended Attributes for EV Charging Stations which comment on topics such as charging rates, network requirements, pricing and station layout.
- The Wall Street Journal published a snapshot of the bullish trajectory in lithium prices.
Market trends and regulation
- the Canadian government, in agreement with Mexico, said it could impose tariffs in response to a proposed U.S. law that would offer consumer electric vehicle tax credit which are made by unions in the USA. Prime Minister Justin Trudeau said conversations to resolve the dispute are ongoing and include the possibility of aligning incentives for electric vehicles to ensure there are “no unfair advantages on one side. or the other “. the EU also expressed concern to Senate leaders about the potential of the proposal to discriminate against European cars and parts.
OEM / suppliers
- Bosch and Volkswagen are about to conclude a collaboration agreement on automotive software.
- Toyota announced temporary production stoppages in Japan due to shortage of parts, affecting the production of Lexus models and the Toyota Land Cruiser. Last month Toyota announced plans to resume normal production levels in December at its factories in Japan.
- Volkswagen Group is considering an initial public offering for its Porsche brand, as part of a financing process for its transformation towards software and electrification.
- Ford will invest more than $ 900 million to modernize its two factories and its supply chain network in Thailand.
- Volvo suffered a cyberattack centered on its R&D property and concluded that there could be an “impact on the operations of the company”.
- Daimler Truck began trading on December 10 on the Frankfurt Stock Exchange under the ticker symbol DTG, following its spin-off from Daimler AG.
Connected / autonomous vehicles and mobility services
- the San Francisco Municipal Transit Agency (SFMTA) is contesting a request for DG subsidiary company Cruise to charge for robotaxi trips in the city. The agency’s concerns include commercial vehicles stopping in a traffic lane and not providing service in low-income areas. Cruise plans to launch its commercial taxi service in 2022, starting with San Francisco.
- Interstate 45 between Houston and Dallas becomes an important test route for autonomous trucking.
Electric vehicles and low emission technology
- general managers electric delivery van brand Luminous Drop opened its first dealership last week in Los Angeles. Brightdrop will supply its EV600 and EV410 mid-size delivery vans to its first major customers, FedEx Express and Merchants Fleet.
- Battery Manufacturer LG energy solution expects to raise up to $ 10.8 billion on its next IPO, reflecting a market value of $ 59 billion for the company.
- Factory Updates:
- DG is considering Lansing, Michigan for the site of a new $ 2.5 billion battery cell factory be operated with its partner in a joint venture LG energy solution, according to tax incentive documents filed with the city. The automaker is also continuing its plans to convert its Orion assembly plant into a hub for electric vans.
- Rivien can announce a new manufacturing site at Georgia, according to information that has not been confirmed by the company.
- DG will invest more than $ 50 million in its Bedford, Indiana facility to construct drive unit castings for applications including the upcoming Chevrolet Silverado electric; the automaker plans to begin production of the electric Silverado in early 2023 at its Factory Zero Detroit-Hamtramck assembly center.
- Volvo and Northvolt AB will open a joint battery R&D center in Sweden, and the companies plan to announce the site of their next European battery plant in early 2022.
- Volkswagen announced a joint venture with Umicore and a long term agreement with Vulcan Energy Resources Ltd., to secure the raw materials needed to support its strategy of setting up six European battery factories by 2030.
- Ford plans to reach 200,000 annual production units of its All-electric Mustang Mach-E by 2023 for North America and Europe. This vehicle reached sales of over 24,000 units in the United States as of November 1.
- As part of its ongoing plans to establish and strengthen its supply chain for electric vehicles, DG announced partnerships with rare earth materials supplier MP Materials and advanced magnetic materials producer Vacuumschmelze (VAC).
Prepared by Julie Dautermann, Competitive 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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