OPmobility is implementing cost reduction measures to address the impact of U.S. tariffs, as announced by CEO Laurent Favre during a call with journalists on Tuesday. The company, which supplies major U.S. automakers including General Motors, Stellantis, and Ford, is preparing for a potential decline in client volumes in the second half of the year.
Favre explained that the company is focusing on various cost-saving strategies, such as reducing operating costs, cutting non-essential expenses, and limiting travel. They will also adjust their operations to maintain flexibility in line with shifting production volumes. Additionally, the company plans to reduce investments by 5% to 10% compared to usual levels.
However, Favre emphasized that these measures will not impact OPmobility’s long-term strategy. The company will continue investing in technology, improving its regional balance, and expanding its global presence, with a particular focus on America and Asia. It also aims to diversify its customer base by developing relationships with new entrants like BYD, Chery, Tesla, and Rivian.
Despite the challenges, OPmobility confirmed its full-year outlook, bolstered by cost reductions and a 3.1% revenue growth in the first quarter. The company’s quarterly revenue rose to €2.69 billion ($3.08 billion), up from €2.61 billion a year earlier. OPmobility outperformed global automotive production, particularly in European and Asian markets.
In North America, which accounted for over 27% of the group’s revenue, revenue dropped by 4.1%, mainly due to a decrease in module volumes assembled in Mexico. Favre noted that this drop was linked to seasonality, as some customers launched new models while others discontinued existing ones. He added that the company expects this decline to be offset later in the year.
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