Company: THRM
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023344
Chunk: 206

Company: Gentherm Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 206
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 is due to unfavorable pricing and foreign currency impacts primarily attributable to the Chinese Renminbi, the Korean Won and the Japanese Yen, partially offset by favorable volumes in several product lines within the Automotive segment and favorable foreign currency impacts primarily attributable to the Euro. 

Cost of Sales

Below is a summary of our cost of sales and gross margin, in thousands, for the years ended December 31, 2024 and 2023:

    Year Ended December 31,

    Variance Due To:

    2024

    2023

    Favorable / (Unfavorable)

    Automotive Volume

    FX

    Operational Performance

    Other

    Total

    Cost of sales
     
    $
    1,089,693

    $
    1,117,452

    $
    27,759

    $
    (2,443
    )
     
    $
    6,603

    $
    34,026

    $
    (10,427
    )
     
    $
    27,759

    Gross margin

    366,431

    351,624

    14,807

    1,488

    (526
    )

    36,136

    (22,291
    )

    14,807

    Gross margin - Percentage of product revenues

    25.2
    %

    23.9
    %

Cost of sales for the year ended December 31, 2024 decreased by 2.5% as compared to the year ended December 31, 2023. The decrease in cost of sales is primarily due to supplier cost reductions, value engineering activities, as well as the impact of non-automotive inventory charges in the prior-year period and favorable foreign currency impacts primarily attributable to the Mexican Peso, Ukrainian Hryvnia, and the Chinese Renminbi. These decreases were partially offset by higher wages, higher automotive volumes, start-up costs from our new plants in Tangier, Morocco and Monterrey, Mexico and unfavorable foreign currency impacts primarily attributable to the Euro.

 40

Net Research and Development Expenses

Below is a summary of our net research and development expenses, in thousands, for the years ended December 31, 2024 and 2023:

    Year Ended December 31,

    2024

    2023

    Favorable / (Unfavorable)

    Research and development expenses
     
    $