Lower-than-expected production at auto plants in all major global markets — especially China and Europe — dinged some big suppliers' third- quarter results and outlooks.
An unplanned volume downturn in China, new international tariffs and even severe flooding in Japan led to lower vehicle output. And some suppliers felt the pinch of a sudden acceleration in the consumer shift from cars to light trucks.
"There's a lot of haves and have-nots in the supplier industry," Michael Robinet, managing director of IHS Markit's automotive advisory service, told Automotive News, reflecting on last week's earnings reports. "The volume is holding up, but the issue is OEM mix — especially with Ford and GM as they continue to ramp down on passenger car."
Visteon Corp., which provides instrument clusters, audio and other electronics, said its car-truck mix was a negative factor in the third quarter. Visteon revenue fell 11 percent to $681 million in the third quarter, and its net income fell 51 percent to $21 million.
"The mix continues to shift away from sedans and toward trucks and SUVs, which also impacted Visteon negatively," CEO Sachin Lawande said in a conference call.