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Uber to buy logistics company Transplace for $2.25 billion In 2040, You May Drive a Car That Looks Like This Michigan man pleads guilty to crashing into, killing bicycle-riding teenager Lightyear One to be manufactured in Finland by Valmet Automotive Vehicle submerged in Colorado pool inspires perfect response from local police The scorching hot used car market may finally be cooling off Chippewa Falls man helps others one bicycle at a time Penske Automotive Group and Cox Automotive Debut Automated Platform for Retailing Used Vehicles DC police ask for help to ID vehicle used in shooting death of 6-year-old EV Stocks Could Fly This Summer
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2021
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Foley Weekly Automotive Report – July 2021 | Foley & Lardner LLP

This report helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. 

Key Developments

  • U.S. new light vehicle sales in June reached a SAAR of 15.4 million units, representing a decline of 1.7 million units from May and the lowest SAAR since August 2020.
  • 2021 U.S. new light vehicle sales are forecast in the range of 16.3 million to 16.9 million by the National Automobile Dealers Association, Cox Automotive and LMC Automotive.
  • U.S. fleet sales were up by 5% for January – June, compared to the same period last year, but were 40.5% lower than for the same period in 2019, according to Cox Automotive.
  • New light vehicle inventory fell from an estimated 2.7 million vehicles nationwide in January to 1.4 million in June.
  • IHS Markit estimates that semiconductor capacity will begin to have the ability to adequately meet demand and fill missing backlog starting in the first quarter of 2022.
  • Ford will cut production at eight North American plants over various weeks in July and August as a result of the chip shortage; the automaker has lost production of over 350,000 vehicles this year, according to estimates from LMC Automotive.
  • Toyota’s second quarter sales volume surpassed GM’s for the first time in the U.S. The achievement is described as a short-term event attributed to Toyota’s decision to build a four-month supply of key components such as semiconductors.
  • A COVID-19 Task Force comprised of the UAW, Ford, General Motors and Stellantis announced mask requirements ended July 12 for fully vaccinated union-represented workers in the U.S.
  • A new report from cybersecurity ratings provider Black Kite found that nearly half of 100 automakers and over 17% of suppliers surveyed are at high risk for ransomware attack. Key areas of vulnerability include patch management, with 71% of surveyed companies having “F” or “poor” ratings.
  • Electric vehicles and low emissions technology:
    • Stellantis will invest over 30 billion euros through 2025 in electrification and software, and low emissions vehicles are intended to represent over 70% of sales in Europe and 40% of sales in the U.S. by the end of the decade.
    • According to estimates from the Department of Energy, the U.S. will need 600,000 Level 2 public chargers by 2030 to meet demand, up from the 41,000 available currently. Tesla, EVgo, Chargepoint and Electrify America are among the companies offering Level 3, or DC Fast Charging.
    • As part of its new Alliance Strategic Partner framework, Nissan will compensate a portion of its suppliers’ costs if a jointly developed EV part is not adopted; the decision is intended to strengthen collaborative relationships and share cost burdens.

Market Trends and Regulatory

  • U.S. new light vehicle sales in June reached 1.3 million units, for a seasonally adjusted annualized rate of sales of 15.4 million units. June’s results fell short of expectations for a SAAR of 15.8 million to 16.4 million units. Total sales in June were up