Aptiv PLC stated that it does not expect semiconductor prices to fall in the near future. Despite significant progress in supply-chain concerns, the costs of key vehicle parts remain high, weighing on profits.
The company emphasised that the most significant barrier is the acquisition of chips, which have increased in price by 25% to 30% while supply chains remain constrained.
The Dublin-based company stated that demand for new autos is strong in North America and Europe. However, it highlighted concerns about China’s underlying GDP growth.
Aptiv, a supplier to key companies such as General Motors and Ford, also stated that it is prepared with a “sufficient” inventory to manage potential interruptions in the event of a strike at the two Detroit manufacturers caused by the autoworkers’ union.
During the JPMorgan auto conference, Aptiv CEO Kevin Clark stated, “We possess the flexibility to decrease and subsequently increase again if a labor disruption occurs.”
The United Auto Workers (UAW) are promoting better benefits, such as double-digit wage increases and clearly defined pension plans for all employees, in their conversations with automakers Ford Motor, General Motors, and Stellantis (collectively known as the Detroit Three).