Aptiv expects semiconductor prices to remain high

Aptiv does not expect semiconductor prices to cool off in the near future, the automotive technology supplier said on Wednesday.

Even though supply-chain challenges are easing, prices of certain parts remain high, denting profits.

The company said the "real challenge" is in obtaining chips, whose prices have risen 25 to 30 percent, while supply chains remain tight.

The company said demand for new vehicles remains strong in North America and Europe, but flagged concerns around underlying GDP growth in China.

Aptiv, which counts General Motors and Ford Motor Co. among its customers, also said it is positioned to have "enough" inventory to combat possible disruptions in case of a strike at the two carmakers by the UAW.

"We have the flexibility to adjust down and then back up if there is a labor disruption," Aptiv CEO Kevin Clark said at the JPMorgan auto conference.

The UAW is seeking improved benefits, including double-digit pay rises and defined-benefit pensions, for all workers in its talks with the Detroit 3. 

Aptiv, headquartered in Dublin with operations based in suburban Detroit, ranks No. 13 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $17.5 billion in 2022.