Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 106

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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 1.9 percent, 1.6 percent and 0.2 percent, respectively, in 2025.

In Europe, rising real wages, increased employment, lower inflation (including reduced energy costs), and declining interest rates are driving stronger household consumption. Additionally, new fiscal stimulus measures, particularly in Germany, along with increased spending on infrastructure and defense are expected to enhance economic activity in the second half of 2025 and into 2026. However, emerging concerns regarding tariffs and global trade relations have introduced further uncertainty into the region's growth prospects. Ongoing geopolitical tensions and the war in Ukraine continue to pose significant challenges to overall economic growth. Amid this uncertain environment, economists at the IMF project that the Eurozone economy will grow by 1.0 percent in 2025.

In the Asia Pacific region, China’s economy experienced steady growth in the first half of 2025, bolstered by stimulative measures and the front-loading of exports in anticipation of new tariffs. However, growth is expected to moderate in the second half of 2025 due to the effects of export front-loading, subdued domestic demand, and ongoing declines in property values. Continuing uncertainty surrounding trade relations with the United States is also expected to weigh on economic activity and growth in the second half of 2025 and potentially beyond. Despite these challenges, China’s economy could gain strong momentum through additional government stimulus, a rebound in private consumption, and/or a favorable resolution to 

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trade negotiations with the United States. Taking these factors into account, economists at the IMF project the Chinese economy will grow at a rate of 4.8 percent in 2025.

In South America, the Brazilian central bank continued to raise interest rates in the first half of 2025 in an effort to combat persistent inflation which has been fueled by a tight labor market, wage growth and further devaluation of the Real. These rising inflation and interest rates have continued to undermine consumer confidence in the country. The services and agricultural sectors are expected to drive growth in 2025, while industrial production and fiscal stimulus are projected to decline year-over-year. Additionally, the outlook for exports has weakened due to moderating global demand and concerns over changing global trade and tariff policies, particularly those threatened or imposed by the United States. Given this mixed economic environment, economists at the IMF anticipate Brazil’s economic growth rate will slow modestly to 2.3 percent in 2025.

Production Levels

Our business is directly affected by the automotive vehicle production rates in North America, Europe, Asia