Inflation and production volatility are squeezing the revenue, income and margins of major automotive suppliers that had been hoping for some relief by now from the financial headwinds of the past two years.
Quarterly earnings reports from many of those companies out this week show that those pressures have continued — and in some cases worsened.
For example, Southfield-based seating and electronics supplier Lear Corp. said it has cut global headcount by 7,700 in the past year and is looking to restructure its footprint as its first-quarter adjusted net income was sliced in half from last year. Plymouth-based seat maker Adient plc took an $81 million loss, Auburn Hills-based BorgWarner Inc.'s adjusted operating income dropped 16 percent and Southfield-based Superior Industries Inc. saw net income slip by 23 percent.
All of them pointed to the same challenges.
This story was originally published in Crain's Detroit Business.