Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 1

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 Despite this positive trend in production for the first half of 2025, we expect global production for the full year 2025 will remain flat compared to full year 2024, with declines in North America and Europe being offset by increases in China. Additionally, ongoing changes in U.S. trade policy, including the implementation of significant tariffs on imported goods, are contributing to economic risks and global uncertainty, potentially posing further short-term challenges to the automotive industry.

In North America, U.S. consumer confidence has started to improve but remains below the levels seen in December 2024 following the presidential election, and significantly lower than pre-global pandemic levels. 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, and rising consumer debt continue to hinder economic activity. Economists at the International Monetary Fund (IMF) project the economies of the United States, Canada and Mexico will grow by 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