Automotive components giant Forvia has reported a mixed bag of sales results, with overall third quarter sales down 2.6% on last year at €6.4bn.
Forvia CFO Olivier Durand said the company faces a challenging second half on the back of a projected global vehicle production decline due to factors such as:
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- high inventories in North America;
- ‘numerous’ delayed SOPs (production starts at OEMs);
- increasing risks of labour disruptions at OEMs;
- a pause in electrification with worldwide BEV penetration of global production showing only ‘limited progress’ from 11.7% in 2023 to 12.6% in 2024.
Patrick Koller, Forvia CEO, said that uncertainty remains high in the European market, impacted by a slowdown of electrification and concerns related to the CAFE regulation, while the North American market is suffering from high level of car inventories. In both regions, Forvia outperformed local automotive production levels, he said.
In China, Forvia said it underperformed the local automotive production in the past quarter, due to customer mix evolution and SOPs delayed from 2024 to 2025. “In a Chinese market that is expected to grow in 2025, we confirm that we should resume outperforming the automotive production in the country by at least 300 basis points,” Koller said.
Koller said the order intake signed in the past quarter, “brings to more than €20 billion the cumulated amount since the start of the year, with a well-balanced mix of customers and geographies, and Asia representing around 36% of this amount.”
Forvia expects sales of between €26.8bn and €27.2bn in 2024, with operating margin between 5.0% and 5.3%.
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By GlobalDataForvia highlighted its evolving and ‘strong’ relationships with Chinese OEMs and a ‘robust order intake’. In China, it said there is a ‘rapid ramp-up with Chery’ in seating, as well as new business with Li Auto.
The company also said strong positions with Chinese OEMs will allow it to consolidate its market share in Europe and cited the burgeoning relationship with BYD in Hungary.
Forvia was formed in 2022 with Faurecia’s acquisition of a controlling stake in Hella.
Hella posts flat sales numbers; says Q3 ‘particularly challenging’
