Foley Automotive Update

Analysis by Julie Dautermann, Competitive Intelligence Analyst

This update helps automotive suppliers inform their legal and operational decisions to help address challenges and opportunities. Contact your Foley relationship partner, or Ann Marie Uetz, Vanessa L. Miller, or Nicholas J. Ellis, to follow up.

Key Developments

Foley & Lardner’s second annual Manufacturing White Paper, Top Legal Issues Facing the Manufacturing Sector in 2023, includes an article by Vanessa L. Miller and Nicholas J. Ellis which discusses new challenges and opportunities impacting supply chains as a result of electrified and connected vehicles.
U.S. new light-vehicle sales reached 1.38 million units in June, representing an increase of 20% year-over-year and a SAAR of 15.8 million units, according to estimates from GlobalData (formerly LMC Automotive). The analysis also indicates new light-vehicle inventory levels reached approximately 1.9 million units industrywide at the end of June.
Foley & Lardner provided an overview of IP considerations pertaining to patent and copyright protection for autonomous vehicle software.
New analysis from the National Renewable Energy Laboratory (NREL) estimates that a cumulative national capital investment of $53 billion to $127 billion in charging infrastructure is required by 2030 to support anticipated EV adoption.
Over 300,000 battery electric (BEV) and plug-in hybrid electric (PHEV) vehicles were sold in the U.S. in the first quarter of 2023, representing a market share of 8.6% and an increase of 56% from the same period in 2022, according to a report released on June 26 by Alliance for Automotive Innovation.
Cox Automotive estimates the average EV supply at U.S. dealerships rose to 92 days in the second quarter, up from 36 days a year earlier.
Safety conditions at electric vehicle battery plants are an area of growing interest for the UAW, according to a report in Bloomberg.

OEMs/Suppliers

GM, Ford, Hyundai, and Honda increased U.S. new-vehicle sales by double digit percentages in the first six months of 2023, and sales for Stellantis and Toyota were down by 1% when compared to the same period in 2022.

Electric Vehicles and Low Emissions Technology

Tesla delivered 466,140 BEVs worldwide in the second quarter of 2023, reflecting an increase of over 80% from the same period one year ago.
China’s BYD delivered 700,244 BEVs and PHEVs globally in the second quarter.
By 2025, Volkswagen subsidiary Electrify America will equip its fast charging networks in the U.S. and Canada with the North American Charging Standard (NACS) port favored by Tesla.
The U.S. Department of Energy announced a notice of intent to invest $2 billion from the Inflation Reduction Act to fund cost-shared grants for the domestic production of hybrid, plug-in electric hybrid, fully-electric and fuel cell electric vehicles.
GM announced its newly formed Technology Acceleration and Commercialization (TAC) group acquired Israel-based battery software startup ALGOLiON Ltd. for an undisclosed amount. The deal is expected to help “accelerate time-to-market of a cost-effective early hazard detection system.”
The Detroit News reports construction resumed on the module manufacturing building of the upcoming Stellantis and LG Energy Solution joint venture plant in Windsor, Ontario, following an agreement with the Canadian government for unspecified incentives.
Stellantis will invest 5 million euros to acquire a nearly 20% stake in Kuniko Ltd. as part of an agreement which provides the automaker with nickel sulphate and cobalt sulphate produced from the company’s Norway exploration project.

Automated, Autonomous or Connected Vehicles Technologies

Volkswagen will begin autonomous ride-hailing tests in Austin, Texas this month using ID Buzz electric vans equipped with technology from Mobileye.

Market Trends and Regulatory

Reuters reports the UAW asked the Biden administration to revise proposed emissions standards for model years 2027 and later light-duty and medium-duty vehicles to “better reflect the feasibility of compliance so that the projected adoption of (zero emission vehicles) is set to feasible levels, increases stringency more gradually, and occurs over a greater period of time.”
U.S. Reps. Tim Walberg (R-MI) and Andrew Clyde (R-GA) recently introduced the Choice in Automobile Retail Sales (CARS) Act, which is intended to prohibit the Environmental Protection Agency from implementing its proposed emission standards for model years 2027 and later light-duty and medium-duty vehicles.
The California Air Resources Board (CARB) reached an agreement with leading truck and engine manufacturers that includes “flexibility for manufacturers to meet emissions requirements while still reaching the state’s climate and emission reduction goals.” As part of the Clean Truck Partnership, CARB will align with 2027 federal regulations for nitrogen oxide emissions, and manufacturers of medium- and heavy-duty vehicles committed to “meeting CARB’s zero-emission and criteria pollutant regulations in the state regardless of any attempts by other entities to challenge California’s authority.”

Disclaimer

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.