What specific factors led to the flat sales growth for APG excluding currency effects?

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Factors Contributing to Flat Sales Growth for APG Excluding Currency Effects

Sales for the Automotive Products Group (APG) were broadly flat when excluding the impact of currency fluctuations. This overall stability was the net result of divergent performance across its key geographical regions. While the Asia-Pacific region experienced growth, this was counterbalanced by a decline in sales within the Europe, the Middle East, and Africa (EMEA) region, with the Americas showing a modest increase.
Asia-Pacific Region Drives Growth

In the Asia-Pacific market, APG recorded a 4% sales increase, excluding currency effects. This expansion was primarily fueled by the successful ramp-up of existing programs and an improvement in market share, particularly with Chinese domestic original equipment manufacturers (OEMs) and their supply chain partners. The growing influence of Chinese automotive brands contributed to this positive trend. Specific product categories that saw increased sales included those for thermal management, braking, and interior applications. However, this growth was partially offset by a reduction in sales for products related to closure systems, electric drivelines, and engine and fuel management.
EMEA Region Experiences Sales Decline

Conversely, the Europe, the Middle East, and Africa (EMEA) region saw a 6% decrease in APG sales, excluding currency impacts. This downturn was predominantly attributed to a general softening in customer demand across the region, coupled with strategic price adjustments implemented by the Group. These adjustments were made in direct response to prevailing market conditions. While sales of products for steering, transmission, and closure applications declined, higher sales for engine and fuel management products offered some mitigation to the overall decrease.
Americas Region Shows Modest Increase

The Americas region registered a 2% increase in APG sales, when currency effects are disregarded. This growth was driven by higher sales of powder metal components and products designed for interior applications. However, these gains were largely absorbed by a decrease in sales for products associated with engine and fuel management, braking, and transmission systems, resulting in a modest net increase for the region.

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What specific factors led to the flat sales growth for APG excluding currency effects?

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