European automotive supplier Forvia reported higher organic sales for the first-quarter on Thursday driven by strong North America, and said new awards from Chinese carmakers had boosted quarterly orders.
Forvia, which supplies parts to Stellantis, Volkswagen and Ford, and is also active in China, is affected by falling auto demand and competition from Chinese manufacturers.
The group, born from Faurecia’s takeover of Hella in 2022, reported sales of 6.53 billion euros (USD 6.98 billion) for the first three months of 2024. That was down 1.7% on a reported basis but up 3.1% organically.
Estimated worldwide automotive production dropped to 21.20 million vehicles in the same period, compared to 21.37 last year, Forvia said in an earnings statement.
Results in Asia were mixed, however, with Forvia’s organic sales falling 2.5% even as car production grew by 4.3%. That was due to a year-on-year drop in sales to automaker BYD, which was not fully offset by a ramp-up with other manufacturers such as Leap Motor, Chery, and Li Auto, it said.
In Europe, organic sales fell by 0.3%, weighed down by a “temporary slowdown in electrification”, Forvia said. Automotive production declined by 4.7%.
Organic revenue growth in North America was 6.8%, mainly driven by higher sales in the seating business, while auto production increased by 1.4%.
Forvia recorded 6.5 billion euros worth of new orders in the quarter, more than half of which came from Asia on the back of new deals with Chinese automakers.
Last week, it announced a new partnership with Chery to develop sustainable cockpit systems and modules using low-emission materials and processes.
