Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 53

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 Canada and Mexico will grow by 2.0 percent, 1.2 percent and 1.0 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, fiscal stimulus measures, particularly in Germany, along with increased investments in infrastructure and defense are contributing to overall economic growth. However, there is still uncertainty about how recent trade agreements with the United States will be implemented and their potential impact. Amid this uncertain environment, economists at the IMF project that the Eurozone economy will grow by 1.2 percent in 2025.

In the Asia Pacific region, China’s economy has shown steady growth, supported by stimulus measures and an increase in exports ahead of anticipated new tariffs. However, weak domestic consumer demand, persistent declines in property values and increasing public debt are obscuring the prospects for future growth. Additionally, ongoing uncertainties in trade relations with the United States have contributed to a slowdown in private industrial investment. Despite these challenges, economists at the IMF project the Chinese economy will grow by 4.8 percent in 2025.

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In South America, the Brazilian central bank has maintained policy interest rates at restrictive levels to combat persistent inflation resulting from a tight labor market, wage growth and weakening of the Real. These high interest rates, along with decreased fiscal stimulus, political tensions leading up to the 2026 presidential election, and worsening trade relations with the United States, have negatively affected consumer confidence and economic demand in Brazil. In light of this mixed economic situation, economists at the IMF project that Brazil's economic growth rate will slow modestly to 2.4 percent in 2025.

Production Levels

Our business is directly affected by the automotive vehicle production rates in North America, Europe, the Asia Pacific region and South America. These production rates can be impacted by changing macro-economic conditions, geopolitical actions, regional consumer sentiment, labor disruptions, supply chain disruptions and changing regulatory and trade requirements, among other factors.

Light vehicle production by region for the three and nine months ended September 30, 2025 and 2024 was as follows:

Three Months Ended September 30,Nine Months Ended September 30,(in millions of units)2025(1)2024(1)% Change2025(1)2024(1)% ChangeNorth America3.9 3.8 4.7%11.7 11.8 (1.4)%Europe3.8