Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (04/12/2024)

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.  

 

Baltimore Bridge Collapse:

• Auto Supply Chains Face Delays From Baltimore Bridge Collapse 
• Baltimore Bridge Collapse Could Cost $9 Million a Day 
• GM, Ford will reroute Baltimore shipments after bridge collapse 
• Why auto supply chains have shown resiliency after the Baltimore bridge collapse, port blockage 

Alan’s thoughts:

The Francis Scott Key Bridge collapse has caused automakers to develop workarounds to maintain a steady supply of incoming parts as well as vehicle shipments. The Baltimore Port is the largest US port for import/export of vehicles, handling 847,000 vehicles (State of Maryland data) last year. Some automakers will be affected more than others. Supply chain professionals at each of the OEMs are analyzing inventory and working to secure alternative shipping channels to keep plants running and dealerships stocked. 

Disruptions such as the Key Bridge collapse are nearly impossible to predict. Supply chain professionals must navigate uncertainty, whether in the form of natural disasters, pandemics, or shipping accidents. Lessons learned from the pandemic have reinvigorated supply chain contingency planning and brought into focus the importance of supply chain resiliency. 

 

Hybrids Surge Past EVs: 

• Why hybrid sales surge as EV sales flatten 
• Ford to delay all-electric SUV, truck to focus on offering hybrid vehicles across its lineup by 2030 
• Ford to expand hybrid vehicles, push back launch of 3-row EVs to stay competitive 
• Hybrid Cars Retake The Limelight As EV Sales Slow. What It Means For Ford, GM, Tesla. 
• US automakers race to build more hybrids as EV sales slow

Alan’s thoughts:

Sales of hybrid vehicles have rebounded recently, providing a sales boost to companies with hybrid offerings. EV sales are still growing with an impressive year-over-year increase of 54%. Battery power remains the primary choice of propulsion for the long term.  

Interesting questions to be answered: 

• Will the demand for hybrids make a dent in sales of Tesla’s EV-only portfolio in the near term?  
• How rapidly must the charging system infrastructure grow to reduce charging anxiety? 
• When will we see low-cost EV sedans in the US market? 

“We know the EV market is not going to grow linearly,” said Paul Jacobson, CFO of GM. Most people like to see nice, smooth growth curves but the reality is that significant inflection points, such as those the auto industry is experiencing, create uncertainty and risk. The best-run companies can react quickly when the market doesn’t match the forecast. We’re seeing some of that here. 

 

Hydrogen Powered Trucks:  

• It’s electric! Metallica summer tour hits the road with Iveco electric power 
• EV maker Nikola beats first-quarter deliveries estimates for hydrogen trucks 
• Nikola Produces 43, Wholesales 40 Hydrogen Fuel Cell Electric Trucks for U.S. Customers in Q1 2024 

Alan’s thoughts:

Hydrogen (H2) as a fuel source for long–haul trucking appears promising. Much depends on the infrastructure and availability of environmentally friendly hydrogen production. H2 fuel cell vehicles offer the promise of diesel-quick refueling. Competition with EV propulsion continues as advanced battery cell chemistry seeks to reduce weight, while customers contemplate new hub and spoke logistics configurations customized for expected EV range.