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In the face of what General Motors’ CEO Mary Barra calls a “fast-changing market,” this week General Motors announced its plans to end the production of certain vehicles, reduce its North American work force by more than 10%, and idle five plants in the United States and Canada. General Motors also announced that it plans to cease operations at two additional (but not yet identified) plants outside of North America by the end of 2019.…
In the face of what General Motors’ CEO Mary Barra calls a “fast-changing market,” this week General Motors announced its plans to end the production of certain vehicles, reduce its North American work force by more than 10%, and idle five plants in the United States and Canada. General Motors also announced that it plans to cease operations at two additional (but not yet identified) plants outside of North America by the end of 2019.…
Guest Author: Ruth Knox, Managing Associate, Linklaters LLP Given the pace of change in the automotive industry and related technologies, combined with increasing regulatory scrutiny and recent developments in trade and M&A, there are several risks and challenges the global automotive industry can expect to deal with for the remainder of 2018 and beyond across Europe, China, and the United States. Recently,  Foley & Lardner LLP and Linklaters LLP held a roundtable on the “Future of…
Guest Author: Ruth Knox, Managing Associate, Linklaters LLP Given the pace of change in the automotive industry and related technologies, combined with increasing regulatory scrutiny and recent developments in trade and M&A, there are several risks and challenges the global automotive industry can expect to deal with for the remainder of 2018 and beyond across Europe, China, and the United States. Recently,  Foley & Lardner LLP and Linklaters LLP held a roundtable on the “Future of…
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. Even automotive companies that solely or largely source from domestic steel companies have discovered that steel prices were sharply rising…
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. Even automotive companies that solely or largely source from domestic steel companies have discovered that steel prices were sharply rising…
Elevated warranty expenses for Original Equipment Manufacturers (OEMs) are expected to continue in 2018, and automotive suppliers can expect to continue paying a greater per-vehicle share of these expenses. Because OEM purchase orders and corresponding terms and conditions contain highly OEM-favorable language, exceptions and limitations to supplier warranties are difficult to negotiate.…
On March 1st, the automotive sector that consumes steel and aluminum was 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 automotive companies. Further, many of the parts and components that the OEMs purchase are made from domestic- and foreign-sourced steel…
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 automotive companies. Further, many of the parts and components that the OEMs purchase are made from domestic- and foreign-sourced steel…
We’re in the midst of a rapid evolution not only in the way drivers operate their vehicles, but also in the operations, compliance, go-to-market strategy and cyber preparedness of the entire automotive industry. More than 70 million connected cars will be on the road by 2023, as predicted by IHS Markit, and autonomous vehicles aren’t far behind with current models equipped with semi-autonomous functionality, including auto-steering, self-parking, autonomous lane changing and collision-avoidance features.…