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Automotive News Updates

The 12 months has been wealthy for sellers, automakers — however suppliers, not a lot

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Lear Corp., the world’s ninth-largest auto components provider, this month reported a lack of $27 million within the third quarter, in contrast with $174 million in internet earnings a 12 months earlier, as decreased automobile manufacturing took a chew out of the corporate’s funds.

On a name with traders this month, Lear CEO Ray Scott identified unpredictability as the issue.

“Our monetary outcomes had been negatively impacted not solely by vital quantity reductions versus final 12 months,” Scott mentioned, “but additionally by low visibility from our clients resulting in short-notice manufacturing shutdowns.”

Equally, Canadian big Magna Worldwide Inc., North America’s largest provider, reported internet earnings of $11 million for the third quarter, a 97 % plunge from the $405 million it made a 12 months earlier.

Cooper-Customary Automotive Inc. mentioned it had a $123.2 million internet loss within the third quarter. In response to the state of affairs, CEO Jeff Edwards instructed traders that it’s renegotiating contracts with clients, with the aim of recovering $100 million in losses.

“We have requested for recoveries beginning October 1st,” Edwards mentioned. “Clearly, we will ask no matter we need to, and we’re within the stage of negotiation the place in some instances, we have achieved that. In different instances, the negotiations are nonetheless ongoing.”

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