Aptiv said that supply disruptions and inflationary cost impacts are likely to persist in 2023.
Executives at Aptiv PLC said that the price cuts by big electric vehicle (EV) manufacturers such as Tesla and Ford have not yielded any increase in production.
“Those (pricing) actions have happened in the last couple of weeks, we have not seen big schedule moves yet. Not saying they won’t happen, but haven’t seen material changes at this point,” Aptiv finance chief, Joseph Massaro, told Reuters.
US electric vehicle (EV) maker Tesla cut the prices for all its Model 3 and Model Y cars in China for the second time in less than three months, in January. The EV maker also cut the prices of its two models by about 10% each in Japan and has been offering discounts for the same in Singapore. Ford Motor Co followed suit and initiated price cuts and boosted the production of its electric crossover SUV Mustang Mach-E.
Experts believe that the automakers’ decisions would trigger an impending price war amid a global slump in the auto market.
Last week, Aptiv PLC forecast a lower-than-expected 2023 adjusted profit, partly, due to inflationary pressures even as price hikes provided some relief to its fourth-quarter results.
Overall, the company reported a 12% increase in revenue during the fourth quarter to $4.6 billion.
The company stated, “Despite macroeconomic uncertainty, supply disruptions and inflationary cost impacts that are likely to persist in 2023, our continued focus on operational excellence, along with our recent acquisitions of Wind River and Intercable Automotive, have positioned Aptiv for accelerated growth over the long-term.”
The Irish-American automotive technology supplier designs, manufactures, and assembles the electrical architecture of vehicles, including engineered component products, connectors, cable management, wiring assemblies and harnesses, electrical centres and hybrid high voltage and safety distribution systems.