Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (01/05/2024)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

In-Vehicle Tech Advances & Setbacks:

• GM Says It’s Ditching Apple CarPlay and Android Auto for Your Safety 
• Tesla recalls nearly all vehicles sold in US to fix system that monitors drivers using Autopilot 
• An abused wife took on Tesla over tracking tech. She lost. 

Alan’s thoughts:

Early last year, GM raised eyebrows by announcing it was dropping the popular CarPlay and Android Auto from future vehicles. Recently, GM shed light on the motivation behind such a move. I suspect that most people who have used CarPlay and Android Auto have experienced “drop-outs” while driving. Whether warranted or not, users will often blame the automaker for such poor performance. The underlying challenge stems from the clock speed of cell phone application software which changes much more frequently than automotive infotainment systems. This makes system interoperability testing extremely complex. Consequently, some applications will lack the desired robustness, resulting in user dissatisfaction. GM’s strategy aims to address this issue by offering a solution combining the characteristics of automotive robustness with a cell phone’s frequent over-the-air updates, such as maps. We will have to wait to see if GM can execute this vision. 

The Push for Auto Sales: 

• Whitmer floats tax rebate plan for new vehicle sales, ties higher rebates to union shops 
• Tesla shares 48V architecture with other automakers to move the industry 
• Ford Will Cut Planned Electric F-150 Production as Demand Slows 
• Tesla Model Y is #2 US Bestseller in 2023 through Q3, Behind Perennial #1 Ford F-150, and Ahead of Toyota RAV4 

Alan’s thoughts:

The 48 volt architecture is back? Seeming to have more lives than Morris the Cat, the architecture can be found on Tesla’s new Cybertruck. While numerous automakers have implemented sub-systems powered by 48 volts (e-Torq, electric power steering, etc.), few if any, have fully eliminated 12 volt networks. As students of Ohm know, 48 volt networks provide the same power delivery of a 12 volt system at ¼ the current. This means wire harnesses can use thinner wires reducing cost and weight. The main sticking point has long been the 70-year legacy of 12 volt electrical components (such as radios, window lift motors, etc.) ingrained in the supply base, providing reliable, robust, and readily available components at scale. Transitioning to 48 volts means the supply base must redesign and retool while continuing to earn a profit on commoditized components — a formidable task in today’s environment. 

Labor Update: 

• Tesla to raise pay about 10% for hourly workers in January, report says 
• More than 1,000 VW workers in Tennessee sign union representation cards -UAW 
• General Motors says 1,300 workers will be laid off at two Michigan plants 
• Tesla to be asked by Nordic pension funds to respect collective bargaining 
• GM’s Cruise laying off 900 employees, or 24% of its workforce: Read the memo here 

Alan’s thoughts:

The battleground for autoworker organizing is shifting towards the south and west as the UAW seeks to grow its membership after securing contracts with the Detroit 3. Tesla recently announced anticipatory pay raises, mimicking recent moves by Toyota, Honda, and Hyundai. The challenge will be significant, but the UAW is leveraging its momentum to turn the tide of autoworker sentiment in the south. Keep an eye out for potential discussions that could reshape the landscape of labor within the industry.   

What Snehasis is Checking Out: 

• LIVE CHAT: CES 2024 Preview | LinkedIn
• CES 2024 Tech Trends

Snehasis’ Thoughts:

The tech world is gearing up for the Consumer Electronics Show (CES) 2024, and anticipation is running high. From cutting-edge TVs with breathtaking picture quality to groundbreaking innovations in health and wellness, CES 2024 promises to showcase the latest technologies that will shape the future.

Some of the hottest trends to watch for include:

1. The Rise of Artificial Intelligence (AI)
2. Autonomous and Micro Mobility
3. Health and Wellness Innovation
4. Sustainability in the Spotlight
5. Features and experience including business cases
6. Robotics and Automation
7. The Unexpected: CES is always known for its surprises, and 2024 is likely to be no different. Expect to see new and unexpected technologies that will push the boundaries of what we thought possible.

CES 2024 promises to be an exciting event that will offer a glimpse into the future of technology. With so much innovation on the horizon, it’s clear that the technology industry is constantly evolving and pushing boundaries, making our lives easier, more connected, and more enjoyable.

What Yen is Checking Out: 

• Department of Energy Releases Proposed Interpretive Guidance on Foreign Entity of Concern and Public Comment
• New US Rules, Aimed at curbing China, could limit tax credits for electric vehicles
• White House details term that could slash eligibility for EV tax credits

Yen’s Thoughts:

Beginning January 1, 2024, electric vehicle (EV) batteries incorporating components sourced from China, such as electrode active materials (including cathode materials, anode materials, anode foils, electrochemically active materials), battery cells, and battery modules, will disqualify the EV from eligibility for the $7,500 clean vehicle tax credit. This regulation poses a substantial hurdle for automakers currently reliant on Chinese EV batteries and components. Notably, the United States imported over $1.6 billion worth of EV batteries and components from China through September 2023, constituting over 70% of total EV battery imports.

This regulation serves to incentivize automakers and battery manufacturers to establish a domestic supply chain for EV batteries. Despite an investment surpassing $120 billion in the past two years, the majority of these investments are not expected to yield battery cell production until 2025 or later. This timeline underscores the urgency for accelerated development and production processes to support the U.S. EV transition.

What Lisa is Checking Out:

Revolutionizing Road Safety: How AI Is Making Driving Safer Than Ever | LinkedIn

Lisa’s Thoughts:

In this blog post, the authors explain how new technology in vehicle safety systems (aka, advanced driver assistance systems: ADAS) incorporates artificial intelligence (AI). The article outlines two interesting and important topics: it provides a review of the driver assistance technology that is revolutionizing driver safety, and it demystifies the way AI is incorporated into products that we use daily (e.g., our cars). A great read for those who are interested in learning the terminology and capabilities of driver assistance systems. Further, this post outlines the benefits of ADAS including more sophisticated collision avoidance, object detection, timely warning systems, and most importantly, the limitations of the technology. One of the most critical aspects of understanding driver assistance systems involves avoiding over-reliance on automated systems and avoiding assumptions that vehicle technology eliminates the need for driver attention. Currently, humans are still better equipped to detect and react appropriately to unexpected and unusual situations.

What CAR is Checking Out:

Newlab

The CAR team and partners spent the afternoon at Newlab touring their building and hearing industry experts discuss the automotive happenings in 2023 and outlooks for 2024 at our December Drives and Holiday Vibes industry briefing & networking event.

Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (12/01/2023)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

Hype for Hybrids:

• America’s top-selling car will soon come only as a hybrid
• November inventory trends: Leftover ‘23s, an EV plateau, and hybrid hype 
• The auto industry overestimated EV demand this year. Now companies are scrambling. 
• Hybrid vehicle sales surge in China, posing fresh threat to foreign automakers  

Alan’s thoughts:

A recent resurgence in hybrid model sales is causing automakers to rethink their portfolios. Toyota’s HEV lineup, featuring popular models such as the Prius, Camry, and Rav4, is experiencing strong demand, prompting other automakers to assess the pace of their transition to pure EVs. This shift is evident on a global scale, impacting the markets in China, the US, and the EU. Price matters and EVs are expensive, especially when considering interest rates for new car sales. The message to the industry: find a way to make EVs more affordable. The message to policymakers: market forces are powerful, and consumers will choose the best option that best fits their needs. 

The Battle for Battery Plants: 

• Ford to scale back plans for $3.5 billion Michigan battery plant as EV demand disappoints, labor costs rise 
• Stellantis declined Michigan’s $1 billion offer for EV battery plant 
• Intelligent industry for automakers: Supercharging EV battery manufacturing 
• Up to 900 foreign workers coming to Windsor to help build EV battery plant, NextStar says amid backlash 

Alan’s thoughts:

The battle for EV battery plants is uneven, unpredictable, and not for the faint of heart. Ford is scaling back plans on their joint venture with CATL in Michigan, citing cost containment and an overexuberant demand forecast. Stellantis spurned generous incentives from Michigan in selecting a Kokomo, Indiana site for a second battery plant. The Canadian government is facing backlash over the prospect of foreign workers handling equipment set up. Supply chain management is especially challenging when implementing new technology, establishing new plants, gaining access to critical minerals, and managing costs concurrently. This is further exacerbated by uncertain EV demand through 2030. Buckle your seatbelts and hang on tight. 

Reducing Emissions: 

• U.S. finalizes rule requiring states to set transportation emission targets 
• Biden’s clean energy agenda faces mounting headwinds 
• Decarbonizing Heavy Transportation: Quantron’s Michael Perschke On Pioneering Hydrogen Solutions 

Alan’s thoughts:

Long haul trucking has been frequently cited as one of the best applications for hydrogen (H2) fuel cells, offering an advantage over electric vehicles (EVs) by avoiding the payload-reducing weight of pure EV batteries. Fuel cells appear to be a good candidate due to fast refueling times and range. However, the H2 infrastructure is even more nascent than the EV charging networks. The EV alternative will require reconfiguring the logistics networks into a spoke and hub arrangement to accommodate the expected range of EV trucks. This is a massive undertaking and still requires infrastructure improvements to accommodate DC fast charging of large capacity batteries used in trucking. I’m encouraged by having multiple alternatives, but these long-term strategic decisions are not to be taken lightly, as they will significantly impact the movement of goods for decades to come. 

Check out what CAR has been checking out! We asked some members of the Center for Automotive research team to share what they have been reading, watching, or listening to recently.

What Alan is Checking Out: 

Reuters: Volkswagen plans job cuts, further launch delays at software unit

Alan’s Thoughts:

Checking out the challenges automakers face of in-sourcing software. Is the combination of new EE architectures, the transition to EV propulsion, and the philosophy of software-defined vehicles disruptive enough that layering software in-sourcing on top of it all is a bridge too far?

What Tyler is Checking Out: 

Autoline: Can Anyone Take on Tesla in the U.S.?

Tyler’s Thoughts:

In the podcast, it is noted that this transition will not be painless for the industry – likely why Shawn Fain made the EV transition a key point in negotiations. However, we have noticed recently that some automakers are easing off the EV charge and putting their foot back a bit more on the gas, so to speak. Ford paused $12 billion of EV investment, GM is slowing EV production, and even Tesla is warning of a slowdown in demand. Perhaps automakers are also starting to feel the pain that will be part of this industry’s transition. On the other hand, there has been news that may help drum up demand among car traditionalists: Toyota has developed a faux manual for EVs that can bring back the experience of stalling out your car.

What Cullen is Checking Out:

Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry

Cullen’s Thoughts:

It is called “Overhaul” by Steven Rattner and it is a really interesting exploration of the government-private sector relationship during the 2008-2009 financial crisis as it relates around the Big 3 and autos. Rattner’s perspective examines the challenges faced by the Big 3 and the role of the U.S. government in responding to the economic crises they faced. It’s especially interesting because it looks at each side’s decision-making processes, negotiations, and political and public perception.

What Sam is Checking Out:

NREL: Electric Vehicle Lithium-Ion Battery Life Cycle Management

Sam’s Thoughts:

As I learn more about this growing sector, it has become apparent that the industry’s development is closely intertwined with the burgeoning EV battery manufacturing sector, with innovations on both fronts pushing the other further as well as the boundaries of environmental responsibility. One notable challenge, however, is the significant impact of transportation costs on the efficiency of recycling processes. This could be a large barrier to growth in the future given the enormous physical weight of batteries. Yet, if the industry could mitigate these large costs, this could be an excellent way to work around lithium mining as a limiting factor and decrease the stress on battery supply chains.

Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (11/0/2023)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

Supply Chain & Manufacturing: 

“If you can’t beat them, buy them”

• Exclusive: GM snatches key Tesla gigacasting supplier 
• As Exxon eyes lithium, crucial decision looms on filtration technology 
• EV truck startup Zeus signs deal with manufacturing and engineering firm 
• Stellantis, suppliers take over tooling from bankrupt supplier

Alan’s thoughts:

Supply chain management has become a key element of corporate strategy. Much more than a component of “operations”, it now drives strategic decision–making. For automakers, substantial investments are underway in crucial mineral mining for battery production and new technology for component castings. For energy providers like Exxon Mobil, investment in lithium processing signals a shift from drilling to mining. While this shift may not necessarily signify a revival of Henry Ford’s Rouge Plant’s vertical integration, it undeniably underscores that supply chain management is now far beyond a mere procurement function. 

UAW Ratification & Aftereffects:

• Here’s why the UAW’s record deals with GM, Ford and Stellantis aren’t getting full support 
• Stellantis workers ratify UAW contract; Ford on brink of approval 
• Hyundai raises workers’ pay 14% next year, 25% by 2028, following Toyota and Honda ‘
• Stellantis offers buyouts to roughly half of U.S. salaried workers 

Alan’s thoughts:

Contract ratification results are in, and it appears the UAW rank and file have approved the terms negotiated in October. Approval margins were thin at GM with larger margins at Stellantis and Ford. Next up for the UAW: Toyota, Honda, Tesla, and other non-represented plants. The road ahead for the UAW to increase its membership will be challenging as Toyota and Honda have recently increased wages in an anticipatory move. Expect other companies to follow suit. 

Pedestrian & Road Safety: 

• What Brazil Has And Hasn’t Achieved On Road Safety 
• Tall trucks, SUVs are 45% deadlier to US pedestrians, study shows 
• Under fire, GM’s Cruise suspends supervised car trips, expands safety investigation 

Alan’s thoughts:

AVs from Cruise have suspended operations due to safety concerns amplified by a recent pedestrian incident. Blunt-nosed trucks and SUVs are more deadly to pedestrians than their passenger car cousins. Pedestrian safety is gaining attention in the US and other countries. Saving lives remains a priority whether in-vehicle or to vulnerable road users (VRU). We need to redouble our efforts to protect our citizens. Approaches may include the use of cellular networks, V2X technology, roadway architecture, and vehicle design. Reducing vehicle-related deaths should be the collective goal of public and private organizations and drive our policy and funding agendas. 

Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (11/03/2023)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

  Results from the UAW Strike: 

• Column: UAW won historic gains from the Detroit 3, but a big hurdle remains 
• Stellantis says it is least affected by North America strikes among Detroit Three 
• Winners and losers of the UAW talks with GM, Ford and Stellantis 
• UAW’s next target? Tesla and Elon Musk look enticing to the union 
• Toyota to Hike Pay for US Hourly Workers After UAW-Detroit Deals 

Alan’s thoughts:

Tentative agreements are in place for Ford, Stellantis, and GM. Now on to the rank and file for ratification. There are significant gains for the labor union – 25% wage increases, a return of COLA, increased retirement contributions, wage tier phase-out, and the right to strike over plant closings. Not a bad haul for the UAW. Also, part of the tentative agreement is commitments for future products. Ford has signaled there will be an $8.1 billion investment in products and plants. Stellantis will assign a mid-size truck to the idled Belvidere assembly plant in Illinois.  

What’s next? The UAW plans to use this momentum to organize Toyota, Tesla, VW, and others. This won’t be easy as automakers will likely offer anticipatory wage increases as the UAW readies their plans. Stay tuned. 

The Pause in EV Production: 

• GM to delay all-electric truck production at Michigan plant until late 2025 
• EV transition slows as inventory grows and industry hits hurdles 
• New Data Tells Dealers They Need Customer Experience Overhaul For EVs 
• Tesla shares slip as production cut by battery supplier Panasonic fans EV demand fears 

Alan’s thoughts:

EV demand appears to be softening. Economists point to high vehicle prices stunting demand. High loan interest rates and extended terms are exacerbating the situation. What steps should be taken? Slowing the EV production ramp is a logical move. Looking at global markets, EVs aren’t a matter of “if” but rather “when”. Slowing the EV production ramp will allow automakers to manage their capital investment spending while providing additional time for product and process changes. Design optimization and productivity improvements offer the best opportunities to reduce EV costs. A rapid build-out of the charging infrastructure is sure to help improve consumer confidence and spur demand.  

Autonomous Vehicles: 

• Cruise Immediately Halts All Robotaxis Nationwide, Seeks To ‘Rebuild Trust’ 
• Tesla wins first US Autopilot trial involving fatal crash 
• Cruise Suspends Robotaxi Operations, What They Must Do To Fix It 

Alan’s thoughts:

There are two lessons here. First, transparency is of utmost importance. It is crucial to share all applicable data and videos with regulatory authorities if the industry is to build consumer trust in autonomous vehicles. Second, we still lack a robust method for demonstrating deployment readiness. The development of industry standards would be instrumental in addressing this challenge. These standards may not require legislative mandates if the industry is willing to collaborate and propose substantial guidelines for AV readiness. The domestic industry needs to address this quickly and in a meaningful manner or else expect to cede AV leadership to other countries. 

Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (10/20/2023)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

  EV Charging & Trucking:

• Hyundai and Kia to adopt Tesla’s EV charging tech next year 
• Tesla Semi outperforms rivals in a real-world test
• Mercedes unveils long-haul electric truck to take on Tesla 
• 2024 Kia EV9 will top out at 304 miles of range 

Alan’s thoughts:

Add Hyundai and Kia to the list of Tesla-compatible EV chargers. This is further acknowledgment that OEMs view access to charging stations as one of the key accelerators of EV sales. While flying under the radar, EV trucking continues to progress as Tesla, Daimler Trucks, and Volvo, among others, will be offering commercially available long-haul trucks. With surprising range and higher–than–expected payload capacity, EV trucking is becoming viable. Looking to Europe for inspiration, long–haul trucking will need higher power charging stations than its passenger car cousins. Look for EV battery innovation to be co-fueled by trucking and passenger car segments, with consumers as the long–term beneficiaries. 

Advances in Hydrogen: 

• Hydrogen Hub Prototype In Norwegian Fjords. Nordic Notes
• This Company Is Turning Waste Into Clean Hydrogen. And Electricity. And Water. 
• Biden, energy secretary to unveil $7 billion hydrogen hub projects 
• Michigan-backed hydrogen hub gets up to $1B from feds 

Alan’s thoughts:

Clean hydrogen production in the US is moving from concept and proposal to implementation. Toyota’s hydrogen hub at the LA port is expected to go on-line in 2024, while recent Biden administration grants are funding H2 hubs in the mid-west. This is an encouraging sign as our experience from EVs shows that a charging (or refueling) infrastructure is important to new technology adoption. Learning from Norway can help reduce the friction associated with the new technology adoption curve. 

Connected Vehicle Systems Alliance (COVESA): 

• COVESA Looks To Topple Auto Software Tower Of Babel 
• General Motors Open Sources Interfaces For New Software Platform 

Alan’s thoughts:

Standardization – an achievement long sought by engineers to reduce product development effort and improve time to market, has proven difficult to realize. There are a few success stories like the diagnostic codes used throughout the industry by dealers and repair shops to identify system faults and guide technicians servicing vehicles. Software standardization, or in this specific case, digital signal definitions and interfaces, has been OEM-specific, defined and developed uniquely by engineers following company-specific design methodologies. Zooming out, some industry experts are examining how OEM-specific operating systems and architectures could impact the software ecosystems that underpin the industry. By seeking non-competitive standardization, the industry can reduce rework and improve time to market. Of course, this is voluntary and hence, the challenge that organizations like COVESA face. However, non-competitive standardization is one path toward a more efficient software ecosystem that will benefit the OEMs, suppliers, and consumers. 

Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (10/06/2023)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

 Tech & Safety:

• Honda recalls 1.2 million U.S. vehicles for rear camera issue 
• Night Moves: How Does Night Vision Work on the 2023 Jeep Grand Cherokee 4xe? 
• Cruise robotaxi was second vehicle to strike San Francisco pedestrian, video shows  
• In Tesla trial over Autopilot fatality, lawyer cites ‘experimental vehicles’ 

Alan’s thoughts:

Safety systems that assist drivers are most valuable when thoughtfully integrated into the vehicle. Systems that are reliable, minimize false positives, and utilize an intuitive driver interface offer the best chance of saving lives or reducing injuries. Even the most basic systems such as rear cameras, require defect-free components, proper assembly, and robust design to ensure reliability. As systems become more complex, the challenge of ensuring a reliable system increases. For the industry to best serve its consumers, automakers should cooperate with data sharing for safety systems.  Commonizing driver interfaces can improve consumer awareness and trust. Sharing corner cases for AVs can help accelerate industry learning without ceding competitiveness. It is time to “zoom out” and capture the bigger picture of saving lives. 

Third Quarter Reports & UAW Strike: 

• US new vehicle sales jump in third quarter as UAW strike casts shadow 
• Rivian reports better-than-expected EV deliveries for the third quarter 
• HYUNDAI-GENESIS: EVs deliver Q3 boost 
• Tesla 3Q sales rise 27% but fall short of analysts’ estimates due to price cuts and factory downtime 
• Ford’s third-quarter US auto sales rise on pickup, crossover SUV demand 
• GM reports 3rd-quarter gain of 21% with pickups, new SUVs driving sales 

• Ford makes seventh contract offer to UAW: ‘Strongest’ yet 
• GM secures new $6 billion credit line as UAW strike costs reach $200 million
• United Auto Workers, Mack Trucks reach tentative agreement 
• Ford makes new offer in US labor dispute, GM furloughs more workers 

Alan’s thoughts:

A robust Q3 for US auto sales shows healthy demand for ICE, hybrid, and EVs. However, Q4 for the Detroit 3 does not look good as a result of the ongoing UAW strike. In the meantime, Toyota, Hyundai, Rivian, and Tesla keep rolling along. Households affected by the strike are tightening their belt to preserve savings while facing a strike with an uncertain endpoint. Automakers and suppliers are also experiencing repercussions, as revenue dries up while plants are idled. Tier 2 and 3 suppliers, operating without the benefit of deep pockets, are doing their best to gut this out. It is time to reach a new labor agreement and get back to the business at hand of designing and building competitive, world–class vehicles.  

Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (09/22/2023)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

UAW Negotiations:

• UAW, Detroit Three in standoff as wider strike looms 
• Canadian auto workers to vote on Ford deal starting on Saturday 
• Michigan and the Auto Industry Share a Past. What About the Future? 
• UAW strike idles Kansas GM plant, prompts Stellantis machining plant layoffs 

Alan’s thoughts:

We are approaching the first full week of the stand-up strike, which has initially idled operations at three assembly plants. As the shortage of parts begins to impact other plants, such as GM’s Fairfax assembly plant, the UAW has indicated that more plants will be targeted if an agreement is not reached by Friday. The public statements made so far do not inspire confidence that an agreement is at hand, and the details of the negotiations remain largely undisclosed. In the meantime, U.S. assembly plants for Toyota, Honda, Nissan, Mercedes, Volkswagen, and Hyundai keep humming along. It is crucial to establish an agreement quickly, as the damage only grows for each side over time. 

Detroit Auto Show & Tech Upgrades: 

• Here’s every major reveal from the Detroit Auto Show 
• Ford reveals refreshed 2024 F-150 with new tech, updated look, tailgate upgrade 
• Cadillac CT5 shoots for younger clientele with updated look, tech
• Detroit auto show reveal: 2024 Jeep Gladiator comes with new tool for finding trails  

Alan’s thoughts:

This year’s Detroit Auto Show saw significant improvements compared to the previous year, thanks to better planning and readjusted expectations of a contemporary auto show. Gone are the multi-million dollar displays from all major OEMs. Noticeably absent, though not entirely, are the European automakers. Formerly known as the North American International Auto Show, it has evolved into more of a Detroit auto show. This transformation is not necessarily a negative change. As long as there are product announcements, new steel to admire, and a showcase of horsepower, be it fueled by benzene or electrons, the show remains a relevant and worthwhile celebration of the Motor City. I look forward to next year’s event being even better!  

EV Battery Production:   

• EU may become as hooked on China batteries as it was on Russian energy, report says 
• Cummins, Daimler, PACCAR form joint venture for US battery cell production 
• Canada will take 20 years to recoup Stellantis, Volkswagen subsidies, watchdog says 
• Synthetic graphite for EV batteries: Can the West crack China’s code? 

Alan’s thoughts:

The IRA is incentivizing more than just EV production. It’s also targeted to bolster the production of EV batteries in the United States by sourcing critical minerals domestically. This initiative comes as no surprise, considering the widespread conversations about China’s dominance in lithium production. In addition to lithium, the list of critical minerals includes nickel, cobalt, and graphite. If the U.S. is serious about EV production, and judging by OEM investment and product announcements it most certainly is, we will need a robust U.S. supply chain if we are to meet future demand.