Category Archives: Supply Chain

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Understanding The Warranty Of Fitness For Particular Purpose In The Automotive Supply Chain

tariffs
For automotive suppliers, some of the most important terms in any contract for the purchase or sale of goods are the warranties that apply to those goods. This article will address one particular kind of warranty – the warranty of fitness for particular purpose. A warranty of fitness for particular purpose generally arises in one … Continue reading this entry

New Exclusions Process Gives Automotive Companies the Possibility of Exemption from Section 232 Steel and Aluminum Tariffs

tariffs
On March 23rd, automotive companies that rely on imported steel and aluminum were confronted with new special tariffs of 25 percent on all imports of steel and tariffs of ten percent on all imports of aluminum, with temporary exclusions for Argentina, Australia, Brazil, Canada, Mexico, the member countries of the European Union, and South Korea. … Continue reading this entry

New Exclusions Process Opens Up Potential Relief from Section 232 Tariffs for Users of Specialty Steel and Aluminum Products or Companies that Serve National Security Needs

On March 23, steel and aluminum users were confronted with new special tariffs of 25 percent on all imports of steel and tariffs of ten percent on all imports of aluminum, with temporary exclusions for Argentina, Australia, Brazil, Canada, Mexico, the member countries of the European Union, and South Korea.1 These measures created a great … Continue reading this entry

Overview of Distribution Supply Chain Options

supply chain
When determining how to sell a product in the marketplace, there are a number of supply chain options from which to choose, each with its own set of legal implications.  However, the primary consideration in determining how to sell a product should be what makes the most sense from a business perspective (for example, if … Continue reading this entry

The Automotive Sector Faces Sharply Increased Duties, Pricing Uncertainty Following Announcement of Section 232 Tariffs on Steel and Aluminum

On March 1st, the automotive sectors that consume steel and aluminum were confronted with a potentially large tariff rate increase. The section 232 measures are intended to raise the prices of all steel products – whether imported or domestic – and thus will have an impact on any major purchaser of steel, which includes most … Continue reading this entry

Protecting Your Supply Chain in the Face of Potential Auto Industry Challenges in 2018

As the economy has improved and unemployment has fallen in the nearly 10 years since the Great Recession, North American vehicle sales volumes have also steadily increased and the forecast remains strong for 2018. Bloomberg estimates that approximately 16.7 million vehicles will be sold in 2018, with the majority being light trucks and sport utility … Continue reading this entry

Mobility, New Technology, Compliance Take Center Stage at Foley’s 2018 Auto Show Program

Exponential technological growth and transformative change are creating unique opportunities and challenges for the automotive industry. That was a key theme of Foley’s 2018 Auto Show Program, hosted by Foley partners Mark Aiello and Ann Marie Uetz and held on January 17, 2018, alongside the North American International Auto Show in Detroit.… Continue reading this entry

NAFTA Renegotiations Create Uncertainty for Automakers

white house
The promise to renegotiate or else withdraw from NAFTA was one of the central points of the Trump campaign that helped him win states like Michigan, Ohio, and Pennsylvania.  In keeping with his campaign promises, the Trump administration has since proposed to tighten automotive content rules and rules of origin (from 62.5% to 85%) to … Continue reading this entry

Battery Development in the Auto Industry Leads to Electrification of Ships and Planes

battery development
With the release of the new Tesla semi-truck in November, the public’s attention was captured with the idea of emission-free movement of freight.  In the United States, over 70% of freight is carried at some point by truck, and the potential transition from diesel to electric could have a dramatic impact on emissions. However, recent developments have … Continue reading this entry

SUV Sales Again Carrying the Auto Industry

SUV sales
If it seems like déjà vu, it’s not just you: SUVs are again leading the charge on new vehicle sales.  Buoyed by low gas prices and growing millennial families, SUV sales have increased by 6 percent from 2016 to 2017 (through October)—even though the overall car market has declined by 2 percent during the same … Continue reading this entry

FAST Act Recall Pilot Program Gets Underway in Maryland

Recall
One of the more bedeviling problems for the automotive industry (and for manufacturers in general) is how to alert consumers to pending recalls, and getting consumers to comply with those recalls.  According to NHTSA, only 70% of recalled vehicles are repaired, even though such recalls are frequently safety-sensitive and repairs are free to consumers.… Continue reading this entry

Stout Issues Third Annual Warranty and Recall Report

recall
By Guest Authors:  Neil Steinkamp and Robert Levine of Stout Risius Ross, LLC Massive automotive recalls continue to grab headlines and raise concerns industry-wide. Recalls of light vehicles topped 50 million units in 2016, representing the third consecutive year of elevated – and record setting – automotive recall activity. Stout’s third annual Automotive Warranty & Recall Report provides a … Continue reading this entry

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

5 Measures International Auto Companies Can Take to Avoid Being Named in an ITC Complaint

international
The Automotive Industry is international. That’s no secret. It crosses continents in its industry shows and its proud place in furious pop-culture films. More practically, many companies that operate within the industry have stakes in both domestic and foreign soil. This comes into play when considering the supply chain and FCPA compliance as well. Most … 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

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

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

Navigating Connected Cars in 2017: Data Protection

It’s a fact: today’s marketplace has given connected cars the green light. As an OEM or supplier accelerating to create products to meet industry demand, what challenges can you anticipate in 2017? Here is the second installment (following up our post on IP Protection) describing where we believe your attention should be focused during the … Continue reading this entry

NAFTA Under the New Trump Administration

The election of Mr. Trump as the President of the United States has created considerable uncertainty regarding the U.S. investment climate. Chief among these uncertainties is the status of the North American Free Trade Agreement (NAFTA), which President-Elect Trump repeatedly attacked for leading to the loss of U.S. manufacturing jobs. President-Elect Trump has vowed to renegotiate the … Continue reading this entry

Automotive Supplier Industry Gathers with "Industry at a Crossroads"

OSHA Turns Its Sights on Auto Suppliers
The Original Equipment Suppliers Association (OESA), the leading U.S. trade group representing automotive suppliers, convened its 2016 Annual Conference on November 2nd under the theme: “The Industry at a Crossroads.” The title reflects two basic crossroads facing the industry today:  the crossroads of the evolution to connected and autonomous vehicles, and the crossroads of an … Continue reading this entry

Looking Ahead: Where Automotive Innovation Meets Cybersecurity in 2017

cybersecurity
The automotive industry has long been exempt from the cyber attacks that have affected so many companies operating in the financial services, healthcare and retail spaces. However, that is changing quickly due to the copious amount of historical data being collected by modern vehicles and the new autonomous features created by manufacturers.… Continue reading this entry

Enjoy Your Holiday Weekend!

The Dashboard Insights team wishes you a safe and happy Labor Day. We’ll be back to our regular posting on Thursday, September 8. Thanks for your continued support of our blog!… Continue reading this entry