Aptiv says no EV production surge yet after price cuts
(Reuters) -Executives at auto parts supplier Aptiv Plc said on Thursday they do not yet see a surge in electric vehicle (EV) production after recent price cuts by its client Tesla Inc and other automakers.
"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 said during an analyst call.
Tesla slashed prices globally on its electric vehicles by as much as 20% earlier this year to stoke demand, triggering a price war.
Soon rival Ford Motor Co followed with its own price cut and boosted production of its electric crossover SUV Mustang Mach-E.
Production levels are being closely watched at automakers as they try and ramp output at a time analysts have raised the prospect of a demand destruction due to a worsening economic environment.
Aptiv, which makes advanced driver assistance systems, vehicle computers and high-voltage cabling, said it expects global light vehicle production to fall 1% this year as a chip crunch continues to weigh.
The company also forecast a lower-than-expected 2023 adjusted profit in part due to inflationary pressures though price hikes shielded its fourth-quarter results.
Aptiv Chief Executive Officer Kevin Clark said macroeconomic uncertainty, supply disruptions and inflationary cost impacts are likely to persist in 2023.
The company expects full-year adjusted profit per share between $4.00 and $4.50, compared with analysts' expectation of $4.73 per share, as per Refinitiv data.
It reported an adjusted profit of $1.27 per share for the quarter through December, compared with analysts estimates of $1.22 per share.
The company reported revenue for the fourth quarter of $4.64 billion, beating analysts' estimates of $4.45 billion.
The company's shares were up 3% in morning trade.
(Reporting by Raechel Thankam Job in Bengaluru and Joe White in Detroit; Editing by Rashmi Aich and Maju Samuel)