Company: CPS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001320461-25-000131
Chunk: 2

Company: Cooper-Standard Holdings Inc.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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 into account, economists at the IMF project the Chinese economy will grow at a rate of 4.8 percent in 2025.

In South America, the Brazilian central bank continued to raise interest rates in the first half of 2025 in an effort to combat persistent inflation which has been fueled by a tight labor market, wage growth and further devaluation of the Real. These rising inflation and interest rates have continued to undermine consumer confidence in the country. The services and agricultural sectors are expected to drive growth in 2025, while industrial production and fiscal stimulus are projected to decline year-over-year. Additionally, the outlook for exports has weakened due to moderating global demand and concerns over changing global trade and tariff policies, 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