Forvia optimistic about prospects despite “challenging” semester

Automotive components giant Forvia has reported a mixed set of sales results, with overall third-quarter sales down 2.6% year-on-year at €6.4 billion.

Forvia CFO Olivier Durand said the company faces a difficult second half due to a decline in projected global vehicle production due to factors such as:

• high inventories in North America;

• “numerous” backlog SOPs (production starts at OEMs);

• increasing the risks of labor disruptions at OEMs;

• a pause in electrification with global production BEV penetration showing only “limited progress” from 11.7% in 2023 to 12.6% in 2024.

Patrick Koller, CEO of Forvia, said that uncertainty remains high in the European market, affected by a slowdown in electrification and concerns related to CAFE regulation, while the US market suffers from a high level of car inventories. In both regions, Forvia exceeded local car production levels, he said.

In China, Forvia said it underperformed local auto production last quarter, due to customer mix developments and delayed SOPs from 2024 to 2025. “In a Chinese market expected to grow by 2025, we confirm that we should resume outperforming domestic auto production by at least 300 basis points,” Koller said.

Koller said that the order intake signed last quarter, “brings the amount accumulated since the beginning of the year to more than 20 billion euros, with a well-balanced mix of customers and geographical areas, and Asia representing the around 36% of that amount.”

Forvia expects sales of between 26.8 billion and 27.2 billion euros in 2024, with an operating margin between 5.0% and 5.3%.

Forvia has highlighted its evolving and “strong” relationships with Chinese OEMs and a “robust order intake”. In China, he said there is a “rapid increase with Chery” in seats, as well as new business with Li Auto.

The company also said that strong positions with Chinese OEMs will allow it to consolidate its market share in Europe and cited the growing relationship with BYD in Hungary.

Forvia was formed in 2022 with Faurecia’s acquisition of a controlling stake in Hella.

“Forvia upbeat on outlook despite ‘challenging’ H2” was originally created and published by Just Auto, a brand owned by GlobalData.

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