Outperformance relative to global vehicle production

Q2: Revenue down 2%, 1% below underlying production. " Q1: 2% revenue growth vs -1% global production. " Q4 2023: Negative growth over market (-5%) due to strikes and mix shifts. " "

Revenues down 2% but outperformed market in certain lines (ASUX segment down 1%, 4% above global production; Active Safety +14%, 19% above market) " "

Improved vs Q4 2023 lows; continuing to outperform in some product segments.

Strong growth outlook for 2025 and beyond

Q2: Emphasized electrification, software-defined vehicles, margin targets (~12.5% by 2025). " " " " Q1: Limited direct detail, hinting future expansion. " " Q4 2023: Optimistic but margin target delayed to 2026. " "

Expressed confidence in 2025 growth, focusing on cost controls and volatility challenges. "

Maintained optimism on long-term growth, with cost improvements supporting future margins.

Collaborations and new business wins

Q2: Radar award with Japanese OEM, mention of Tesla volume cuts. " " Q1: Wins with Japanese OEMs, no Tesla mention. " " Q4 2023: $34B in full-year bookings, with first major Japanese OEM awards. " "

Total $3.6B in new Q3 awards; $3.2B in SPS, with wins for the largest Chinese local EV maker. No mention of Tesla/Japanese OEMs. " "

Sustained strong bookings, but no specific Tesla or Japanese OEM references in Q3.

Production cuts and volume declines

Q2: Lower volumes from four key customers driving revenue shortfall. " " " Q1: Reduced schedules from global OEMs and EV-only OEMs. " " " Q4 2023: UAW strike, lower volumes from certain Chinese JV customers. " "

One top customer cut production by 35% in North America, revenue down 6% overall; EV volumes declined 20%. " " " "

Ongoing challenge; sudden large drops in Q3 illustrate heightened volatility.

Volatility in production schedules

Q2: Customers revising schedules, shifting 2024 production outlook to -3% from -1%. " " " Q1: Unexpected BEV schedule cuts impacting forecasts. " " " Q4 2023: Schedules more aligned with forecasts but back-end weighted. "

Increased unpredictability, difficulty adjusting for a 35% drop at one customer. " "

Continuing issue, with Q3 showing sharper swings than prior quarters.

Declines in EV production impacting revenues

Q2: Lower production for a global EV-only OEM contributed to revenue shortfall. " " Q1: Slashed high-voltage growth outlook from 20% to 5%. " " " Q4 2023: Slower high-voltage growth from ~30% to 20%. " "

EV volumes down 20%, expected -15% to -20% for full year. " "

Worsened in Q3, with further cuts and guidance lowered for full year.

Share repurchase initiatives

Q2: Approved $5B repurchase; $3B accelerated program, strong balance sheet. " " " " Q1: $600M repurchased in Q1, no leverage detail. " " Q4 2023: $300M repurchased in Q4, minimal leverage worries. " " " "

EPS of $1.83 partly aided by share repurchases, no explicit leverage concerns mentioned. "

Ongoing repurchases; no new leverage commentary in Q3.

Engagements with Chinese local OEMs and potential geopolitical risks

Q2: Over 50% revenue now from local OEMs; $1.8B YTD bookings with them. " " Q1: Emphasis on localized supply chain due to geopolitical factors. " " " Q4 2023: ~60% of SPS bookings in China with local OEMs. " " "

Hosted technology showcases with BYD, Changan, Great Wall, but no direct geopolitical comments. "

Continuing strong engagement with local Chinese OEMs; no direct Q3 mention of geopolitics.

Engineered Components business

Q2: Low single-digit growth, offsets slowdowns in other lines. " " Q1: Briefly mentioned as contributing to NA revenue. " Q4 2023: No mention.

Cited as a >20% margin contributor, growing despite broader headwinds. "

Consistent high-margin segment, emphasized more in Q3.

Cost-saving measures and margin improvement

Q2: 180 bps margin expansion from supply chain cost cuts, overhead reductions. " " " Q1: 200 bps improvement via engineering rotations, overhead reductions. " " " Q4 2023: 90 bps expansion in Q4, 150 bps for year. " "

120 bps margin expansion, proactive cost management, overhead reductions. " " "

Continuing margin gains from disciplined cost actions.

Reduced funding for Motional and autonomous technology challenges

Q2: No mention. Q1: Hyundai acquiring more Motional equity; Aptiv reducing stake, +$0.30 EPS from Q4 2024. " Q4 2023: Won’t fund future rounds due to L4 cost/commercial challenges. " " "

No Q3 mention.

De-emphasized in Q3 commentary, with prior quarters detailing Hyundai’s increased funding.

High R&D spending versus immediate revenue generation

Q2: Reallocating resources, reducing engineering spend by $75M-$100M. " Q1: No mention. Q4 2023: Focus on productization and reuse for cost-effective solutions. "

No Q3 mention.

Not discussed in Q3, with ongoing mention in previous calls of trimming R&D in certain areas.

OEM pricing and margin pushback

Q2: Price recoveries slowing as material inflation subsides. " Q1: No mention. Q4 2023: Typical pricing discussions, no unusual pushback. "

Ongoing negotiations, OEMs emphasizing cost reduction with full-system solutions. "

Similar dynamic continues, with incremental pushback seen in Q3.

Heavy reliance on local sourcing and supply chain

Q2: Localizing semiconductors in China, stable supply chain. " " Q1: Deep localization in China, building presence. " " " Q4 2023: Regional footprints and local semis to reduce cross-border risks. " "

90% in-region production, 80% in-region sourcing, aiming to mitigate tariff and duty risks. "

Maintained localization strategy; highlighted holistic “in region for region” approach in Q3.

Active Safety (ADAS) growth potential

Q2: +15% revenue, new radar/rADAR wins with Japanese/Chinese OEMs. " " " Q1: +24%, strong demand, first Gen6 ADAS award. " " " " " Q4 2023: ~20% growth expected into 2024. " " "

ADAS up 14%, 19% above market, new Gen7 radar launch. " " "

Continued strong momentum, with new technology releases in Q3.

Slower high-voltage electrification growth

Q2: Investments scaled back, cautious but optimistic. " " Q1: Outlook cut from 20% to 5%. " " " Q4 2023: Slower growth from ~30% to 20%. " "

Down 20% in Q3, projected -15% to -20% for full year. "

Worsening short-term EV production trends, consistent with prior caution.