Company: CPS
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001320461-25-000156
Chunk: 1

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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 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, 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