Aptiv PLC (APTV) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Aptiv PLC surfaced in its latest filing.

• Global automotive vehicle production increased 4% from 2024 to 2025 (1% on an Aptiv weighted market basis); China vehicle production increased 10%, South America increased 1%, North America declined 2%, Europe declined 1%.2025
• In 2025, General Motors restructured its operations in China due to market challenges, potentially reducing demand from one of the company's largest customers.2025
• United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) labor strikes at GM, Ford, and Stellantis lasting more than six weeks adversely impacted financial condition, operating results, and cash flows.September 2023
• Worldwide semiconductor shortage adversely impacted the automotive industry, reducing vehicle production schedules and sales, which adversely impacted financial condition, operating results, and cash flows.2023
• Non-cash, pre-tax goodwill impairment charge of approximately $648 million related to the Wind River reporting unit, due to increased discount rates and reduced forecasted cash flows.Third quarter of 2025
• Mexico implemented country-wide statutory minimum wage increases of approximately 13% (5% in Northern Border Zone), 12%, and 20% effective January 1, 2026, 2025, and 2024, respectively.January 1, 2026, 2025, and 2024
• Mexico may shorten the work week from 48 to 40 hours as early as January 1, 2027.January 1, 2027
• U.S. announced tariffs of at least 10% on imported goods from all countries beginning April 2, 2025.April 2, 2025
• Armed conflicts in the Middle East beginning in October 2023.October 2023
• Conflict between Ukraine and Russia beginning in February 2022, with E.U., U.S., and other governments imposing broad economic sanctions against Russia.February 2022
• Recorded non-cash impairment charges of $11 million in 2023 due to ceasing use of certain long-lived assets in Ukraine.2023
• Announced a plan to separate the Electrical Distribution Systems business into Versigent via a tax-free spin-off.January 22, 2025
• Incurred approximately $178 million in Separation costs during the year ended December 31, 2025.2025