Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 52

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 updates such discussion included in our 2024 Annual Report. References in this quarterly report on Form 10-Q (the “Report”) to “we,” “our,” or the “Company” refer to Cooper-Standard Holdings Inc., together with its consolidated subsidiaries.

Executive Overview 

Our Business

We design, manufacture and sell sealing systems and fluid handling systems (consisting of fuel and brake delivery systems and fluid transfer systems) for use primarily in passenger vehicles and light trucks manufactured by global original equipment manufacturers (“OEMs”). We are primarily a “Tier 1” supplier, with approximately 86% of our sales in 2024 made directly to major OEMs for installation on new vehicles.

Recent Trends and Conditions

General Economic Conditions and Outlook

The global automotive industry is susceptible to unpredictable economic conditions that can adversely impact new vehicle demand and production. Disruptions in the supply chains for certain critical materials and components can further exacerbate these challenges. Business conditions can fluctuate significantly across different periods and regions. In 2024, light vehicle production experienced a modest slowdown, primarily due to rising inventory levels, relatively high interest rates, concerns about vehicle affordability, and ongoing geopolitical tensions around the world. In the first nine months of 2025, global light vehicle production increased by approximately 3% compared to the same period in 2024. However, given certain supply chain disruptions and other headwinds anticipated in the fourth quarter of 2025, we expect global production for the full year 2025 will moderate to an increase of approximately 2% compared to full year 2024. While production is expected to decline in North America and Europe, these decreases will be more than offset by increases in China, South America and South Asia. Additionally, ongoing changes in U.S. trade policy, including the implementation of significant tariffs on imported goods, along with a recent fire at a production facility for a major automotive aluminum supplier, are contributing to economic risks and uncertainty. These factors may pose further short-term challenges for the global automotive industry.

In North America, consumer confidence in the United States remains subdued, with certain indices reaching their lowest levels in over a decade. Uncertainty surrounding U.S. trade policy, particularly the implementation of significant tariffs on imported goods, has created instability in both capital and consumer markets. Persistently high interest rates, elevated prices for consumer goods, growing consumer debt, and a weak labor market are negatively affecting overall economic activity. Economists at the International Monetary Fund (IMF) project that the economies of the United States,