French auto parts supplier Forvia has mitigated about half of its estimated exposure to U.S. tariffs and is preparing to cover the rest, Chief Executive Martin Fischer said on Thursday.
Forvia exports goods produced in Mexican factories to the US, which has been charging a 25 percent tariff on imports from its southern neighbor since March.
Its clients are the automotive giants Stelantis, Volkswagen and Ford.
The company seeks to mitigate the impact of tariffs by negotiating with customers to include higher costs in prices. They are also talking to suppliers about changing contracts and adjusting supply chains.
“We’ve made sure to take advantage of cost-shifting clauses and customer negotiations, we’re working to optimize our supply chain, and we’re trying to maximize the use of the US factories at the same time and then ensure greater cost flexibility across all plants,” said CFO Olivier Durand.
Forvia has also cut investments to better cope with market volatility, cutting capital expenditure and development costs by more than 100 million euros in 2025 compared to last year.
It also plans to reduce additional fixed costs by suspending global hiring, immediately reducing one-off contracts, limiting travel and reducing marketing costs by cancelling participation in the CES and IAA trade fairs.
“The source of the problem is the US … but all subsidiaries should participate in additional cost reductions,” Fischer said.
Forvia intends to sell assets that are not part of the strategic business by the end of 2026, and according to the CEO, interest has primarily come from players outside Europe.
In the first quarter, the company’s revenue rose by 2.6 percent to 6.7 billion euros, outperforming the global automotive market, according to this month’s forecast by Es end Pi Global Mobiliti.
Revenue in China rose 4.6 percent to 1.3 billion euros.
“While the results in China are weaker overall, they include further expansion of business with Chinese manufacturers, in particular the development of BYD and the strengthening of our business with Chery,” Durand said.
