Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 53

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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, 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 Pacific and South America. These production rates can be impacted by changing macro-economic conditions, geopolitical actions, regional consumer sentiment, labor disruptions and changing regulatory and trade requirements, among other factors.

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

Three Months Ended June 30,Six Months Ended June 30,(in millions of units)2025(1)2024(1)% Change2025(1)2024(1)% ChangeNorth America4.0 4.1 (3.0)%7.7 8.1 (4.1)%Europe4.4 4.5 (1.7)%8.8 9.1 (3.3)%Asia Pacific13.0 12.3 6.1%25.8 23.9 7.8%Greater China7.6 7.0 9.0%14.8 13.3 11.7%South America0.8 0.7 9.0%1.4 1.3 8.3%

(1)Production data based on S&P Global, July 2025.

Current industry forecasts indicate global light vehicle production in the full year 2025 will be approximately in line with full year 2024, with declines in North America and Europe offset by increases in China, South America and South Asia. Global production is also expected to remain relatively flat in 2026, followed by modest growth of 2-3% in 2027. However, actual production volumes have varied and may fluctuate from forecasted levels due to various factors including, but not limited to, consumer demand, the regulatory environment, available incentives and industry competitiveness. The electric vehicle segment has been particularly challenged in achieving production volumes that meet forecasted levels.

Raw Materials

Our business is susceptible to inflationary pressures with respect to raw materials. Abrupt changes in the market prices or availability of certain key raw materials may result in operational and profitability challenges for the Company and the industry as a whole. Although global commodity markets and pricing largely stabilized in 2024 and have remained