Foley Weekly Automotive Report

• Published date: 23 September 2021
• Subject Matter: Transport, Rail, Road & Cycling
• Law Firm: Foley & Lardner
• Author: Mr John R. Trentacosta and Ann Marie Uetz

This report helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. Contact your Foley relationship partner, or John R. Trentacosta or Ann Marie Uetz, to follow up.

Key developments

• IHS Markit lowered its global light vehicle production forecast to 75.8 million units in 2021, and 82.6 million units in 2022, representing a downward adjustment of 6.2% and 9.3% respectively. The firm noted this is the largest single adjustment to its outlook in the last nine months, and it expects ongoing supply chain risk, particularly for semiconductors.
  
  
• U.S. new vehicle inventory is estimated at 1.08 million units at the end of August, representing a 31 days' supply; this is a decline of 57% from the same period one year ago.
  
  
• Wholesale used vehicle prices rose by 3.6% in the first 15 days of September, compared to the previous month. The increase is attributed to ongoing inventory challenges for new vehicles, and the demand for replacement vehicles following Hurricane Ida.
  
  
• Intel CEO Pat Gelsinger predicts that semiconductors will account for 20% of the cost of materials in a premium passenger vehicle by 2030, up from 4% in 2019.The market size for automotive semiconductors is expected to nearly double to $115 billion by the end of the decade, leading to the need to increase collaboration between automotive and chip companies.
  
  
• GM will extend production cuts at six plants in Michigan, Kansas, Missouri, Ontario, and Mexico due to the ongoing chip shortage.
  
  
• NHTSA requested data on advanced driver-assistance systems (ADAS) from 12 automakers, in order to compare vehicles equipped with ADAS in the agency's investigation into Tesla crashes that involved its Autopilot system.
  
  
• Ford will partner with Argo AI and Walmart to test an autonomous vehicle delivery service for customers in certain areas of Miami; Austin, Texas; and Washington D.C., beginning later this year.
  
  
• Electric vehicles and low emissions technology:
  
  
  • Ford will invest $250 million to double the production capacity of its all-electric F-150 Lightning pickup truck to 80,000 units per year; this vehicle is scheduled for release in spring 2022.
    
    
  • Rivian built its first production unit of the R1T battery electric pickup truck, and the company begins deliveries to customers this month.
    
    
  • GM will extend a production shutdown for Chevrolet Bolt EVs by three weeks as it resolves battery issues that led to the vehicles' recall.In addition, owners...