Keefer Kennedy's questions to IOCJY leadership • Q1 2025
Question
Asked for more specific details on how the company is managing tariffs on a 'case-by-case' basis and inquired about the potential to increase business with Chinese OEMs, given their tendency towards vertical integration.
Answer
The company manages tariffs by leveraging its global footprint, offering flexibility to shift production between countries (India, Brazil, Turkey, Mexico), which is a competitive advantage. They are in a good position with Chinese OEMs, gaining business in Europe and Brazil, as their global relationship provides confidence. The risk of vertical integration for wheels and chassis is low as these products favor localization.