Category Archives: Business

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The North American Market: Sales and Production Footprint – “The Sky Is Not Falling”

center for automotive research
The Center for Automotive Research (CAR)’s annual Management Briefing Seminars kicked off on Monday in Traverse City, Michigan. Tuesday’s sessions included a detailed update and outlook on “The North American Market: Sales and Production Footprint,” presented by a panel of leading automotive forecasters, analysts and suppliers. The subtitle to this otherwise sterile title could have … Continue reading this entry

Sub-Prime Auto Loan Delinquencies Continue to Rise, but Experts Provide Divergent Views of Impact

Nearly one year ago, we wrote about auto loan delinquencies’ potential impact on the automotive industry. Now, car sales are falling and auto loan delinquencies are making headlines again, with a growing number of subprime loans falling into default. UBS reports that subprime default rates are reaching levels consistent with those just prior to the … Continue reading this entry

STRONGER Patents Act of 2017 Disadvantages Domestic Manufacturers

In late June, Senators Coons, Cotton, Durbin, and Hirono introduced the STRONGER Patents Act of 2017.  The Act includes provisions that seek to heavily change the inter partes review and post-grant review processes.  However, Sec. 108, which focuses on patent infringement, is the portion that may have the largest effect on hurting domestic automotive companies … Continue reading this entry

The Sharing Economy: Ride Sharing Provides Unique Challenges to Automotive Manufacturers Going Forward

A recent study published by AlixPartners estimates that for each car-sharing vehicle on the road, 32 personal vehicle purchases do not occur, which to date has resulted in 500,000 missed vehicle sales for automotive manufacturers. AlixPartners estimates that by 2020, automakers will miss out on an additional 1.2 million vehicle sales as a result of … Continue reading this entry

The 2017 Automotive Mergers and Acquisitions Outlook

Overview As we stand here in early 2017, we are further away from the all-time high in valuations and deal activity that we witnessed in 2015; but despite signs that the extended expansion cycle for the industry may be plateauing, automotive appears poised to remain a leading sector for M&A activity through 2017. Prognostics for … Continue reading this entry

Fans Rejoice: The Fate of the Furious Delivers

Taking a break from our regular legal and business analysis, this post focuses on a different type of industry topic.  As a long-time fan of The Fast and the Furious franchise and a lover of all things automotive, I anxiously awaited the release of The Fate of the Furious.  How would the series survive without … Continue reading this entry

Car Industry Focuses on Luring Younger Buyers as Millennials Shift Attitudes on Car Ownership

For years, we have been reading articles about how teen licensing rates are falling (from 88.6 percent in 1996 to 71.2 percent in 2015).  We have also seen much hand wringing about millennials forgoing car ownership in favor of ride sharing.  But, recent data suggests that younger generations are buying cars—they just started later than … Continue reading this entry

Have the Good Times Ceased to Roll?

Ahhh, the heady days of 2016.  Remember that?  17.6 million vehicles sold in the United States.  As reported by Automotive News (and others), Deutsche Bank says those good times may very well be over and the Auto Industry may be in for some financial uncertainty.  Analysts Rod Lache, Michael Levine and Robert Salmon released a … Continue reading this entry

Automation To Take All Our Jobs

Okay, perhaps not all our jobs, but a lot of them.  As reported by the Chicago Tribune, among other places, PricewaterhouseCoopers released a report recently that up to one-third of jobs in the United States were at risk for automation.  This was higher than the risk in the United Kingdom, Germany, and Japan.… Continue reading this entry

Geneva Auto Show Showcases Europe’s Supercars, Crossover Vehicles Amid Hope for 2017 Sales

supercars
Europe’s Geneva Auto Show ended March 19, demonstrating to the world that Europe continues to dream up some of the best supercars in the world.  Supercars making waves at the show included Lamborghini’s impressive, muscular Huracan Performante, McLaren’s 720S, and the Ferrari 812 Superfast. Renault debuted its newest A110 Alpine sports car, touching on the … Continue reading this entry

New Administration Ramps up Enforcement Efforts

Suppliers Get Ready For Your Recalls
The Trump administration has vowed to bring jobs back to the states. One of the methods it appears it’ll take advantage of is continued, aggressive enforcement of U.S. laws governing exports and international conduct.… Continue reading this entry

Government Contracts: Advantages for Small Business Concerns

small business
Linda McMahon, former chief executive officer of World Wrestling Entertainment, was confirmed by the Senate on February 14, 2017, to lead the Small Business Administration (SBA). It’s expected her work will revolve around growing jobs. Whether or not she’s able to body slam that task into submission, it is yet to be seen how the … Continue reading this entry

E-Commerce Having a Growing Impact on the Automotive Industry

e-commerce
Most sales projections coming out of last month’s North American International Auto Show indicate a slow, gradual, but extended decline following a banner year in 2016. However, competition and sales activity looks to be rousing in one niche area of the industry – the online marketplaces – which is forcing traditional carmakers and sellers to … Continue reading this entry

Commercial Contract Risk in 2017

OESA Sees Sunny Skies for Auto Industry
Coming off a record year in car sales, it’s expected that warranty and recall costs will continue to be on the rise. With that in mind, it’s vital that OEMs and suppliers have both their foreign and domestic contracts in line.… Continue reading this entry

Warranty Issues in 2017

While the jury is out on whether 2017 will be a peak year for new vehicle sales, elevated OEM warranty and recall costs are likely to continue. OEMs, likely will continue to pay the largest share of these expenses, but suppliers can expect to pay a greater per-vehicle share.… Continue reading this entry

2017 Automotive Forecasts Unveiled During Detroit Auto Show Week

It is “Auto Show” week in Detroit, as the city hosts the 2017 North American International Auto Show.  This week includes press unveils of new and updated models, the latest mobility technologies at the AutoMobili-D pavilion, the charity preview featuring 17,000 auto industry players in tuxedos and long dresses and, of course, predictions for where … Continue reading this entry

Connected Cars: Navigating Top Trends in 2017

Yesterday, the Automotive Industry Team of Foley & Larnder LLP (yes, us), hosted its annual event at the North American International Auto Show in Detroit, MI. Eschewing narrow or small topics, we charged into 2017 by trying to predict just what would happen with connected cars in 2017. Our day started with Joseph Kwederis, Automotive Cyber … Continue reading this entry

Record Sales! But...

As has been reported all over, it looks like the Automotive industry will set some sales records in 2016 (see here, here, and here for example). As summarized by JD Power, “The full-year sales forecast of 17.5 million units would surpass the total from 2015 by about 5,000 units. Light trucks figure into the upsurge, along … Continue reading this entry