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 May should reach a SAAR from 16.5 to 16.7 million units, according to estimates released last week by Beetle Automotive, and JD Power and LMC Automobile.
- DG will resume production to his San Luis Potosí and Ramos arizpe factories in Mexico the week of May 31 and production is expected to resume later in June for CAMI assembly plant in Ontario and Great Lansing River in Michigan, following shutdowns caused by the semiconductor shortage.
- Due to the shortage of semiconductors, Nissan ad downtime on unspecified dates in June for three plants in Mexico, and Stellantis will to close its plant in Toluca, Mexico, the week of June 7.
- The automotive industry must consider alternatives to the just-in-time manufacturing approach for some key components such as semiconductors, according to Bloomberg.
- The Biden administration reported that it act without Republican support if a bipartite infrastructure agreement is not reached when Congress returns the week of June 7 after its Memorial Day recess.
- The Senate is planned to vote June 8 on a bipartisan bill that would invest $ 52 billion to support the semiconductor industry in the United States. as part of a package aimed at strengthening the competitive position of the nation.
- Car manufacturers, including Bmw, Daimler and Ford, to have established installations in China at store data generated by vehicles locally in anticipation of increased regulatory oversight in the country.
- Ford ad a new business unit, Ford Pro, as part of an initiative to increase the income of its business deal to $ 45 billion by 2025, up from $ 27 billion in 2019.
- Electric vehicles and low emission technology:
- Ford intends to invest more than $ 30 billion in electric vehicles by 2025, up from $ 22 billion committed earlier this year, and 40% of its global production volume will be electric by the end of the decade. Electric vehicles accounted for 1.2% of Ford’s US sales through April and the automaker’s future electrification strategy focuses on its most iconic brands, such as the Mustang, the F Series and the Transit Van.
- Lordstown Engines expects a 50% reduction in 2021 the production volumes of the next Endurance electric truck.
Market trends and regulation
- JD Power and LMC Automobile forecasts that total new vehicle sales in the United States will reach 1.55 million units in May, which represents an increase of 39.6% from May 2020 and a decrease of 1.9% from May 2019. The seasonally adjusted annualized rate (CAGR) of total new vehicle sales is expected to be 16.7 million units. The same forecast predicts that US retail sales could set a record for the month, while noting the risk of low inventory levels “remains the main threat to maintaining the current sales pace in the coming months. ” Beetle Automotive predicted US sales of new light vehicles of 1.54 million in May, a SAAR of 16.5 million units.
- Senate Republicans have revealed a $ 928 billion infrastructure plan in counter-offer to the White House most recent proposal which offered a potential package of $ 1.7 trillion. Democratic senators have indicated they will pursue an infrastructure package “with or without the support of Republican senators.”
- A bipartisan bill that would invest $ 52 billion to support the semiconductor industry in the United States is scheduled for a final vote June 8The potential funding is part of a proposal now called “U.S. innovation and competition lawWhich aims to strengthen the country’s position in science and technology in order to better compete with countries like China.
- The Senate Finance Committee will advance a $ 259.5 billion package of clean energy tax credit this includes consumption incentives of up to $ 12,500 for electric vehicles which sell for up to $ 80,000 if assembled in the United States at factories represented by unions. the legislation faces Republican opposition because of its high costs and its intention to end tax incentives for fossil fuels. There is also speculation on the Clean Energy Act for America may not ultimately receive a full vote in the Senate, but elements of the proposal could be incorporated into another package.
- the semiconductor industry in Taiwan could be adversely affected by a COVID-19 vaccine shortage in the nation; we think that only 1% of the population has been vaccinated. Taiwan is responsible for manufacturing more than half of the global supply semiconductors. Japan would be considering sharing part of its AstraZeneca vaccine stock with Taiwan and other countries.
OEM / suppliers
- Production declines caused by the semiconductor shortage – by Nissan Aguascalientes Plant 1 and his CIVAC factory in the state of Morelos will each to close for seven days in June, with specific dates not provided, and the automaker Aguascalientes 2 factory will also close for a day in June. Stellantis will to close its factory in Toluca the week of June 7.
- GM to resume production at five of its factories following production stoppages caused by the global semiconductor shortage. His San Luis Potosí and Ramos arizpe factories in Mexico are expected to resume production this week; factories have been down since the weeks of May 17 and May 3, respectively. CAMI assembly plant in Ontario will resume production on June 14, after a hiatus since February. Great Lansing River in Michigan, production of the Camaro resumes on June 21; however, Cadillac CT4 and CT5 production at this plant will remain low until the week of June 28. Bupyeong 1 Assembly in Korea resumes production on May 31, after operating at 50% capacity since late April.
- A grand jury in Texas has been formed in relation to a Foreign Corrupt Practices Act investigation about Toyota more than allegations the automaker bribed Thai judges to overturn a $ 350 million tax judgment.
- DG will be a partner with Lockheed Martin develop lunar ground vehicles capable of transporting astronauts and equipment longer distances on the moon. GM’s area of focus will be expertise in battery-electric and autonomous vehicle technologies. The automaker has already given its support to the Apollo lunar program.
- A recent editorial in Crain’s Business in Detroit notes that in the automotive sector, suppliers will face the greatest disruptions and opportunities associated with the automotive industry’s transition to vehicle electrification.
Connected / autonomous vehicles and mobility services
- the Tesla model 3 lost his Consumer reports “Best choice” ranking after the company announced that it would no longer have radar. Tesla removes the radar of its Model 3 and Model Y cars, relying entirely on visual sensors. This means that it will temporarily disable some of the cars’ advanced safety features, causing the Model 3 to be downgraded to the magazine ‘recommended’ level.
- According to a recent article in The New York Times, fully autonomous vehicles could take decades of development before the technology becomes widely available, at the cost of billions of capital expenditures per company.
- UK based automotive data developer Wejo will become public through a reverse fusion with the blank check company Virtuoso Acquisition Corp. The deal will bring in $ 330 million to Wejo and is expected to close in the second half of the year. Wejo customers include CEO, Hyundai and Daimler.
Electric vehicles and low emission technology
- During his Capital Markets Day presentation last week, Ford announced that he increase EV spending to over $ 30 billion by 2025, from the previous goal of $ 22 billion, and set the goal of achieving a Global production mix of 40% BEV by 2030.Depending on the presentation, one-third of Ford’s full-size pickup segment will be fully electric by 2030 (800,000 units per year); as good as 70% of full-size vans and buses (300,000) and all its European passenger cars. Ford hopes to have battery costs below $ 80 / kwh by the end of the decade, compared to $ 140 / kwh currently. After the event, the automaker share price up 8.5%, reaching $ 13.90 in afternoon trading.
- Separately, Ford ad he would change the name of his Van Dyke Transmission Plant in Sterling Heights, Michigan, Van Dyke Electric Powertrain Center, to signal the manufacturer’s transition to electrified vehicles.
- Lordstown Engines expects a 50% reduction in 2021 the production volumes of the next Endurance electric truck. The reduction was attributed to the need for more capital, as well as the negative impact of COVID-19, industry-wide supply chain constraints and spending “significantly higher than expected. For parts and expedited shipping.
- DG and LG energy solution recognized workers’ rights to organize at the next company meeting Ultium LLC cells battery factories in Ohio and Tennessee. The joint venture sites will employ approximately 2,300 workers when fully operational.
- Toyota debuted a proto hydrogen engine in its Corolla H2 concept at Fuji Speedway from May 22 to 23. This concept vehicle burns compressed hydrogen in a piston engine. Toyota doesn’t have a timeline for mass production, but the automaker has already signaled its focus on hybrid vehicles as an important tool for achieving carbon neutrality.
Prepared by Julie Dautermann, Competitive Intelligence Analyst[View source.]