New Event Notice: Reimagining the Future of Mobility
Join the SAA and its Young Professionals Network (YPN) on August 18 (1:00 p.m. to 2:30 p.m.) as a panel of experts discuss Reimagining the Future of Mobility. Speakers include:
- Peter Deppe, Co-Founder and CEO, KUHMUTE
- Trevor Pawl, Chief Mobility Officer, State of Michigan
- Tanya Skilton, Director of Purchasing and Supply Chain, BrightDrop
Watch your email and the SAA website (www.SAAauto.com) for more details. Registration opens soon.
Miss the LMC Lunch and Learn?
Did you miss June 22’s informative presentation from LMC Automotive's Jeff Schuster and Al Bedwell. The pair provided an updated outlook on vehicle production and the electric vehicle market. If you did miss the presentation – or would like to watch it again, the presentations and the zoom recording can be found on SAA's website in the Members section (www.SAAauto.com).
New SAA Industry Insight Video Examines Findings of Working Relations Index Study
Check out the latest SAA Industry Insights featuring Plante Moran's Dave Andrea who discusses the findings of the 2021 WRI Study. The Working Relations Index Study examines the working relations between Tier 1 suppliers and their North American-based OEM customers from the suppliers’ perspective.
Can Suppliers Avoid Extinction as the Automobile Pivots to Electric?
With every major automaker focusing capital investments on new electric models, suppliers need to understand where the industry is headed — and act fast. Daron Gifford outlines how to turn the coming disruptions into new opportunities.
Enterprise Value Increases to Drive Robust Automotive Supplier M&A Activity
Analysis from Conway MacKenzie indicates that global aggregate auto supplier enterprise values will increase over $400 billion by the spring of 2022 (two years after the pandemic began), leading to robust M&A activity in the next 24 months.
New Vehicle Prices Hit May Record
The average new-vehicle transaction price (ATP) in May 2021 increased 5.4% year over year and reached $41,263, according to an analysis by Kelley Blue Book. The ATP in May 2021 was an all-time record for the month and the 3rd highest ever, following December 2020 ($41,335) and February 2021 ($41,333). Prices increased 1.2%, or $493, from April 2021. The non-luxury vehicle ATP in May was $38,459, while luxury ATP stood at $56,371. The non-luxury segment increased 4.9% ($1,805) year over year, while luxury saw a 2.9% ($1,597) increase.
Supply Constraints to Slow U.S. Auto Sales Growth in June
Growth in U.S. new vehicle retail sales for June is expected to be lower than the previous month, despite strong consumer demand, as supply constraints and chip shortages have led to lean inventories, consultants J.D. Power and LMC Automotive said.
Which Automotive OEMs Have the Best Supplier Relations?
Surprisingly, in the thick of a pandemic year, four of six U.S. and Japanese OEMs improved their supplier relations in Plante Moran's annual North American Automotive OEM--Supplier Working Relations Index Study.
Semiconductor Shortages: Who is Cashing in?
When word of a semiconductor shortage began to circulate at the end of last year, there were many unknowns, including which automakers in North America would be impacted the most. But as we move beyond the six-month mark, we are getting a much clearer picture of those that have persevered, despite the headwinds, and those that have struggled.
Mexico: There Is a (Growing) Liability in Your Fixed Assets – Which You Know You Have
Fixed assets, long a reliable source of value, increasingly present a risk of liability for companies operating in Mexico. Mexican law requires any company that handles, transports, or possesses foreign-made products may be required to prove – with no statute of limitations – that such products are legally imported. Local authorities have taken notice that the necessary records to prove legal importation of fixed assets are not always readily available, and have recently increased their audits of such assets as a source for revenue. There are a number of legal steps, however, that companies should take to mitigate this increasing risk.
U.S. Hybrid Vehicle Market Share is Double That of Full EVs
While a couple of U.S. states and regions like Europe are focused on a future filled with nothing but all-electric vehicles, consumers haven’t been quite so quick to trade in their ICE-powered vehicles for BEVs. EV sales have indeed risen in recent years, , but still only represent a small percentage of overall automotive sales. On the flip side, U.S. hybrid vehicle market share has grown significantly as HEV and PHEV sales outpaced BEV sales in April, according to new data from IHS Markit.
How Technology is Changing the Automotive Industry
The development of autonomous technology and the continued usage of computers has begun to boost user engagement while reducing the necessity for direct control of driving without taking away the pleasure of the open road. As the user begins to hand over control to an onboard navigation system, the advancement of autonomous technology will change the driving experience. One thing is for sure: future cars will be autonomous and interactive, and the two trends are inextricably linked.
Raw Material Costs Rising for Automotive Industry
Widespread inflation has led to the highest raw material cost per U.S. vehicle since 2011, a new Bank of America (BAC) Global Research report found. The report examines the recent bout of US inflation and examines its consequences for the automotive industry. One key takeaway from the report is that the cost of raw materials has risen sharply since mid-2020.
LexisNexis Risk Solutions Helps Automakers Bridge Secondary Owner Knowledge Gap
LexisNexis® Risk Solutions has announced the availability of LexisNexis® Owner Check, a groundbreaking ownership management solution that provides automakers a more timely and complete method of identifying vehicle ownership changes and providing updated contact owner information, helping to unlock new customer engagement and retention opportunities.
Is Your Culture Ready for Industry 4.0?
While Industry 4.0 has been a buzzword for some time, the technology has become more affordable and effective enough in the last two to three years to make it a reality for more companies. There’s an increasingly clear ROI from technology spending, clearing a hurdle that in the past has held back many manufacturers from committing to a digital transformation.
Expectations for Youngstown’s Reinvention Diminish as Electric Truck Companies Scatter
After General Motors unplugged its nearby Lordstown plant, the company and its Endurance all-electric pickup truck were considered the savior of Youngstown. “It’s booming right now. It’s definitely booming,” Donald Trump said in September. These hopes are fading as Lordstown Motors faces financial difficulties and locals are once again worried about the region’s financial future.
Automakers And Suppliers Need to Adapt “All-New Ways of Doing Business’ to Master the Conversion to Electric Vehicles, materials Shortages, the Rise of New Entrants and Other Disruptors such as Autonomy and Connectivity
The automotive industry has so far come through the COVID-19 pandemic well, with significant support of governments worldwide and newfound investor appetite for electric vehicles despite shortages of key components throttling growth. However, the industry now faces disruptions of a magnitude and complexity like never before, and players in the industry need to adopt and hone all-new ways of doing business at virtually every level of their organizations—and they need to do so quickly as the pace of change has accelerated.