NEW YORK: Valeo CEO Christophe Perillat said on Thursday he saw a marginal impact on earnings from US tariffs on steel and aluminium, while the company would pass on the full costs of trade levies on goods from Mexico, China and Canada to its customers.
US President Donald Trump said 25% tariffs on all goods coming into the United States from Mexico and Canada will go into effect on March 4.
“We have new price lists ready, which have been communicated to our clients, and regardless of the reality of the tariffs that will be implemented, we…will obtain 100% immediate compensation,” Perillat said on call with journalists, adding that suppliers alone could not bear this “very significant” burden.
The French automotive supplier, which has manufacturing operations in Mexico and China and also the US, further trimmed guidance and said it expects a slower recovery in sales this year.
Valeo had anticipated sales would recover in 2024, with momentum picking up in 2025, but then cut its guidance for last year in October to below 2023 levels.
In its annual earnings report on Thursday, Valeo said it sees sales falling to between 21.5 billion and 22.5 billion euros in 2025 compared to a previous forecast of 23.5 billion to 24.5 billion euros and the 21.49 billion euros it reported for 2024.
Analysts polled by the company were expecting 22.09 billion euros in sales in 2025.
Even before the tariffs, car parts suppliers like Valeo and Forvia were grappling with a persistent downturn in automotive production.
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