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Cop29: Saudi Arabia accused of editing official negotiating text, report finds
Foley is here to help you through all aspects of rethinking your long-term business strategies, investments, partnerships, and technology. Contact the authors, your Foley relationship partner, or our Automotive Team to discuss and learn more. Key Developments Foley & Lardner announced the 2024 installment of its Auto Trends series—A Year in Review: Updates, Trends and the Road Ahead . This series delves deep into the transformative forces shaping the automotive world by providing weekly insights and analysis tailored to help business leaders navigate a shifting market landscape. The first two articles in the series address the regulatory themes and outlook for the National Highway Traffic Safety Administration , and potential scenarios for a realignment of the EV and EV infrastructure market . manufacturing under President-elect Donald Trump’s administration in the Pitchbook article, “ Manufacturers prep for a new tariff regime .” President-elect Donald Trump in a November 25 social media post stated he would impose additional 10% tariffs on goods from China , and 25% tariffs on all products from Mexico and Canada for the nations’ alleged facilitation of illegal immigration and fentanyl abuse in the U.S. In response, officials from Canada and Mexico indicated retaliatory tariffs would be pursued. [ News coverage of this development is rapidly evolving .] The cost of tariffs on imported vehicles or components would eventually be passed along to consumers in the form of higher vehicle prices , according to commentary from S&P Global Mobility. The New York Times reported the effects of U.S. tariffs on Mexico’s auto industry “would be profound , affecting the price in the United States of popular models like Ford Maverick pickups, Chevrolet Equinox sport-utility vehicles and several variations of Ram trucks.” A number of provincial leaders in Canada recently called for a bilateral trade agreement between the U.S. and Canada that would exclude Mexico. In response, Prime Minister Justin Trudeau indicated that including Mexico in the U.S.-Mexico-Canada trade agreement is his “first choice,” but he is “leaving all doors open.” Political leaders in the U.S. and Canada have expressed concerns over the potential for Chinese goods to avoid tariffs by entering the North American market through Mexico , a claim Mexican President Claudia Sheinbaum has disputed , as well as the possibility that Chinese companies such as BYD could soon establish manufacturing operations in Mexico. As part of a goal to dismantle Biden administration policies that have been described as equivalent to an “EV mandate,” the incoming Trump administration signaled an intent to weaken the National Highway Traffic Safety Administration’s Corporate Average Fuel Economy (CAFE) standards and the Environmental Protection Agency’s tailpipe emissions requirements . The first Trump administration overturned similar Obama-era vehicle fuel economy and emissions regulations. The Alliance for Automotive Innovation urged President-elect Donald Trump to maintain the $7,500 consumer tax credit for qualifying EV purchases , and to establish policies to accelerate the deployment of autonomous vehicles . The industry association also suggested revisions to vehicle emissions and fuel-economy regulations , as well as the need to rethink a requirement to equip nearly all new light vehicles with advanced automatic emergency braking systems by 2029. Wood Mackenzie analysis indicates a potential revision or repeal of federal EV subsidies , as well as fuel economy and vehicle emissions rules ,could lower projected U.S. EV sales by nine percentage points to 23% of new light vehicles by 2030 . The analysis also predicts hybrid vehicles could achieve a U.S. market share of 18% by 2030 . Consultancy AlixPartners predicted that up to $129 billion of EV investments in North America through 2027 are “at risk” due to anticipated Trump administration policiesthat are expected to be unfavorable to EVs , as well as the expectation automakers will delay or cancel BEV models and further reduce electrification expenditures. Members of President-elect Donald Trump’s transition team indicated that establishing a federal framework for autonomous vehicles could be among the Transportation Department’s top priorities, according to unnamed sources in Bloomberg . Foley & Lardner provided highlights from the MEMA Original Equipment Suppliers Annual Conference held on November 12 and 13 in Novi, Michigan. During the conference, at least one automotive analyst remarked on the risk of excessive inventory levels and underutilized manufacturing capacity. OEMs/Suppliers Automotive News summarized remarks by Ford and GM regarding the automakers’ scenario planning ahead of the incoming Trump administration . Stellantis is exploring potential revisions to its manufacturing and sourcing strategies in the event Trump administration policies affect supply chains, and the automaker indicated it could revisit a plan to expand production and sourcing from lower-cost countries if new tariffs are imposed. GM will lay off approximately 1,000 workers worldwide , and a significant portion of the reductions will affect employees at the Global Technical Center in Warren, Michigan. This follows layoffs of over 1,000 software and services employees in August 2024 . A report in The Detroit News estimates Stellantis has laid off over 3,750 hourly workers in the U.S. in recent months. Ford will eliminate 4,000 employees in Europe, equivalent to 14% of the region’s workforce, by the end of 2027 because of economic challenges, increased competition and weaker-than-anticipated EV sales. The majority of the reductions will occur in Germany . Volkswagen’s union workersin Germany could begin mass walkouts in December if an agreement is not reached during negotiations over the automaker’s planned cost reductions. VW’s labor costs in Germany are reported to be higher than competitors that include BMW and Mercedes. Ford will reallocate 400 hourly workers following reduced Bronco production at the Michigan Assembly Plant in Wayne, MI. Electric Vehicles and Low EmissionS Technology During a panel at the MEMA Original Equipment Suppliers Annual Conference , purchasing executives at three major automakers assured suppliers of transparency for evolving product plans and EV programs. Volkswagen increased its potential investment in Rivian by $800 million to $5.8 billion, as part of a joint venture to advance both in-vehicle software capabilities and EV development . VW previously invested $1 billion in the EV maker as part of a collaboration announced earlier this year. S&P Global Market Intelligence estimates global private equity and venture capital deal value in EVs and EV components reached $3.32 billion in the first three quarters of 2024, compared to $4.03 billion raised by non-EV companies in the same period. Global private equity deal value in EV charging infrastructure from January through October 18, 2024, reached $1.04 billion, according to data from S&P Global Market Intelligence. This compares to a deal value of $1.11 billion in full-year 2023. Swedish battery maker Northvolt AB filed for Chapter 11 bankruptcy protection in the U.S. Separately, Northvolt recently sold certain production assets to Lyten , a California-based lithium-sulfur battery maker. Rivian received approval for a conditional loan of up to $6.6 billion from the Department of Energy to expand EV production. Separately, LG Energy Solution was awarded a five-year battery supply agreement for Rivian’s R2 crossover model. Ford will no longer participate in a joint venture manufacturing plant in Quebec that will produce battery materials for EVs. Construction on the cathode active materials plant is already underway and it is expected to continue, according to a report in La Presse . Workers at the Ford – SK On battery joint venture plant in Kentucky signed union authorization cards to begin a campaign to join the UAW. Stellantis delayed the launch of the 2025 Ram 1500 REV electric pickup truck and its range-extended version to the first half of 2025 from the end of this year. The automaker is also working toward two additional EV launches, the Dodge Charger Daytona muscle car and the Jeep Wagoneer S SUV . EVgo hopes to close a U.S. Energy Department $ 1.05 billion conditional loan guarantee for up to 7,500 fast-charging stalls ahead of the incoming Trump administration. Chinese EV makers delivered 9.75 million EVs to mainland buyers in the first ten months of 2024, reflecting an increase of 34% compared to the same period last year. BYD could surpass Ford in worldwide annual shipments this year, and the milestone would establish the Chinese EV maker as a top 10 global automaker measured by unit volumes. California Governor Gavin Newsom plans to offer EV rebates to consumers in the state if the federal tax credit of up to $7,500 for qualifying EV purchases is eliminated. Stellantis plans to add a hybrid model to the Jeep lineup sometime next year, according to an announcement at the Los Angeles Auto Show . Kia intends to produce the 2025 EV6 compact electric crossover at its plant in Georgia , and the vehicle will begin sales in the first half of next year. Hyundai’s 2026 Ioniq 9 electric SUV will have three-row seating and an estimated 300 miles of range. Hyundai and Kia will recall over 200,000 EVs in North America over a defect that may cause the loss of drive power. Automated, Autonomous or Connected Vehicles Technologies GM autonomous driving unit Cruise agreed to pay a $500,000 criminal fine to end claims that it made false statements to federal investigators after one of its vehicles struck a pedestrian. This follows a $1.5 million civil penalty for the same incident. Autonomous technology developer May Mobility launched robotaxi operations in Ann Arbor, Michigan, without human backup drivers in the vehicles. The company previously established driverless operations in Sun City, Arizona. Market Trends and Regulatory Recent appointments announced by the incoming Trump administration include: former Wisconsin Rep. Sean Duffy to serve as the next secretary of the Department of Transportation ; Oregon Rep. Lori Chavez-DeRemer , described as a “pro-union Republican,” to lead the Labor Department ; Cantor Fitzgerald CEO Howard Lutnick to head the Commerce Department and have “additional direct responsibility” for the U.S. Trade Representative’s office; and Tesla CEO Elon Musk and entrepreneur Vivek Ramaswamy to lead a new Department of Government Efficiency tasked to “dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies.” The National Highway Traffic Safety Administration fined Ford $165 million over claims the automaker delayed the recall of more than 600,000 vehicles with defective rearview cameras. This represents the second largest civil penalty in the agency’s history. Less than a week later, NHTSA opened separate investigations into 457,000 Ford Bronco Sport SUVs over the potential for vehicles to lose power, and roughly 113,000 Ford Expeditions due to the possibility of faulty seat belts. New passenger car registrations in Europe reached 8.9 million units for the first ten months of 2024, reflecting growth of less than 1% when compared to the same period in 2023. In the past decade, venture capitalists have invested approximately $120 billion globally into shared mobility service businesses such as ride-hailing and station-based bike systems. The Federal Communications Commission announced final rules governing cellular-vehicle-to-everything technology in the 5.9 GHz band. This is expected to promote the use of 30 megahertz of spectrum previously reserved for dedicated short-range radio communications for in-vehicle and roadside C-V2X units. Analysis by Julie Dautermann, Competitive Intelligence Analyst
Social Media Unleashes Cruel Responses to UnitedHealthcare CEO's Murder
Not all tech stocks are wild rides on the stock market rollercoaster. While tech often conjures images of skyrocketing prices and sharp crashes, many tech stocks are like calm lakes rather than roaring rapids. Let’s dive into why ( ), ( ), and ( ) are standout examples of steady performers with strong potential for future gains. These three aren’t just surviving the tech scene — they’re thriving with strategic growth, solid earnings, and promising outlooks. Celestica Starting with Celestica, this Toronto-based company specializes in advanced manufacturing and supply chain solutions. In the most recent quarter, Celestica reported a revenue surge of 22.3% year over year to $9.24 billion, accompanied by earnings growth of 14.3%. The tech stock has more than doubled over the past year, with a 52-week range highlighting a low of $35.13 and a peak near $130. These gains reflect its strategic pivot toward high-margin end markets, including renewable energy and aerospace. With analysts maintaining a “Strong Buy” consensus, CLS offers a blend of growth and stability, making it an attractive option for tech investors. OpenText Next, OpenText, a global leader in enterprise information management, boasts resilience in uncertain markets. Its first-quarter 2025 earnings showcased a net income increase of 4.3% year over year despite a revenue dip of 11%. The tech stock’s operating margin remains robust at 19.92%, underpinned by efficient cost management and its ability to generate $928 million in free cash flow over the trailing 12 months. While OTEX’s share price has recently dropped by around 28% in the last year, this dip is an opportunity to snag a dividend-paying tech stock with a forward yield of 3.58%. With a forward price to earnings (P/E) of just 7.92, OTEX is not just cheap. It’s also poised for long-term gains as digital transformation accelerates globally. Kinaxis Now, let’s talk about Kinaxis, a Canadian darling in supply chain management software. With revenue growing 14% year over year to $471 million and earnings per share climbing by 40%, Kinaxis continues to impress. What makes KXS unique is its software-as-a-service (SaaS) model, which offers recurring revenue and resilience against economic turbulence. Analysts predict a bright future, as the company is well-positioned to capitalize on increasing demand for (AI)-driven supply chain optimization. Insider ownership worth over $61 million aligns management’s interests with shareholders, reinforcing confidence in its strategic direction. Three top tech stocks What sets these three apart from volatile tech peers is their focus on consistent profitability and smart growth strategies. Celestica’s move into high-demand industries, OpenText’s emphasis on recurring revenue, and Kinaxis’s leadership in AI-enhanced solutions are all reasons these companies are less susceptible to market swings. Furthermore, each shows a knack for leveraging innovation while maintaining sound financial discipline. Another factor that enhances the appeal is attractive valuation. Celestica trades at a trailing P/E of 28.95, reasonable given its growth trajectory. At the same time, OpenText’s valuation metrics scream value at a forward P/E under eight. Kinaxis may have a higher forward P/E of 36.9, but its stellar revenue growth and leadership in a niche market justify the premium. Let’s not overlook market dominance. OpenText’s enterprise management tools are essential to businesses undergoing digital transformation. Kinaxis helps the world’s largest companies streamline their supply chains — a critical function in today’s interconnected economies. Meanwhile, Celestica is diversifying its revenue streams into growing sectors like green energy and defence, positioning itself as a key player for the next decade. Bottom line In addition to their financial performance, these stocks benefit from tailwinds that support their industries. Supply chain optimization, enterprise digitalization, and green energy are not trends. These are necessities in a rapidly evolving global economy. Companies like Celestica, Open Text, and Kinaxis are uniquely positioned to meet these needs, ensuring relevance and growth potential for years to come. For investors seeking without volatility, CLS, OTEX, and KXS offer a compelling mix of stability and upside potential. With strong earnings reports, manageable debt levels, and clear growth trajectories, these three stocks are perfect for those who want to ride the tech wave without wiping out.