Financial reports for Q1 2025 of many multinational auto parts giants have been released. Under the dual pressures of the US imposing 25% additional tariffs on Chinese auto parts and the slowdown in electrification transformation, the industry has shown significant performance divergence, and cost reduction through layoffs has become the choice for most enterprises. Faurecia and Hyundai Mobis performed brightly: Faurecia’s revenue reached 6.702 billion euros, a year-on-year increase of 2.6%, and its revenue in the Chinese market increased by 4.6%; Hyundai Mobis’ operating profit surged 43.1% year-on-year, and net profit rose by 19.6%.

However, enterprises such as Lear and BorgWarner have fallen into the dilemma of declining revenue and profits. Lear’s revenue decreased by 7% year-on-year, net profit plummeted by 26%, it has withdrawn its full-year financial forecast, and laid off 3,600 employees to promote automation transformation; BorgWarner’s net profit decreased by 26% year-on-year and is reducing the scale of its electrification business. To cope with the tariff impact, many enterprises are promoting cost transfer: Lear clearly requires customers to fully cover the tariff costs, while Faurecia responds to about 50% of the tariff impact through supply chain optimization and production capacity adjustment. Industry insiders believe that localization has become the key for multinational auto parts enterprises to break the impasse; Continental AG, Aptiv and others have successively granted higher decision-making autonomy to the Chinese market.