Aptiv (APTV) risk factors, FY2024 10-K

Risks Related to Business Environment and Economic Conditions

1. 01Disruptions in the supply of raw materials and other supplies that we and our customers use in our products may adversely affect our profitability
2. 02Public health crises and other global health pandemics, epidemics and disease outbreaks and the measures taken in response thereto could adversely impact our business, financial condition, results of operations and cash flows
3. 03to predict and respond to future changes resulting from potential health crises is uncertain as are the ultimate potential impacts on our business. In 2023 and 2024, our manufacturing facilities were not impacted by prolonged shutdowns directly resulting from any public health crises
4. 04The cyclical nature of automotive sales and production can adversely affect our business
5. 05A prolonged economic downturn or economic uncertainty could adversely affect our business and cause us to require additional sources of financing, which may not be available
6. 06A drop in the market share and changes in product mix offered by our customers can impact our revenues
7. 07Our business in China is subject to aggressive competition and is sensitive to economic and market conditions
8. 08We operate in the highly competitive automotive technology and component supply industry, and are dependent on the acceptance of new product introductions for continued growth
9. 09If we do not respond appropriately, the evolution of the automotive industry towards autonomous vehicles and mobility on demand services could adversely affect our business
10. 10We have invested substantial resources in markets and technologies where we expect growth and we may be unable to timely alter our strategies should such expectations not be realized
11. 11We may not be able to respond quickly enough to changes in regulations, technology and technological risks, and to develop our intellectual property into commercially viable products
12. 12Certain of our businesses rely on relationships with collaborative partners and other third-parties for development of products and potential products, and such collaborative partners or other third-parties could fail to perform sufficiently
13. 13Declines in the market share or business of our five largest customers may adversely impact our revenues and profitability
14. 14We may not realize sales represented by awarded business
15. 15Continued pricing pressures, OEM cost reduction initiatives and the ability of OEMs to re-source or cancel vehicle programs may result in lower than anticipated margins, or losses, which may have a significant negative impact on our business
16. 16Our supply agreements with our OEM customers are generally requirements contracts, and a decline in the production requirements of any of our customers, and in particular our largest customers, could adversely impact our revenues and profitability
17. 17Adverse developments affecting one or more of our suppliers could harm our profitability
18. 18The loss of business with respect to, or the lack of commercial success of, a vehicle model for which we are a significant supplier could adversely affect our financial performance
19. 19Increases in costs of the materials and other supplies that we use in our products may have a negative impact on our business
20. 20Our hedging activities to address commodity price fluctuations may not be successful in offsetting future increases in those costs or may reduce or eliminate the benefits of any decreases in those costs
21. 21We may encounter manufacturing challenges
22. 22Changes in factors that impact the determination of our non-U.S. pension liabilities may adversely affect us
23. 23We may suffer future asset impairment and other restructuring charges, including write downs of long-lived assets, goodwill, or intangible assets
24. 24Employee strikes and labor-related disruptions involving us or one or more of our customers or suppliers may adversely affect our operations
25. 25We are exposed to foreign currency fluctuations as a result of our substantial global operations, which may affect our financial results
26. 26We face risks associated with doing business in various national and local jurisdictions
27. 27In addition, the outbreak of armed conflicts in the Middle East beginning in October 2023 has created numerous uncertainties, including the risk that the conflicts spread throughout the broader region, and their impact on the global economy and supply chains
28. 28We face risks related to cybersecurity for both our infrastructure and products and any cybersecurity breach or failure of one or more key information technology systems, or those of third-parties with which we do business could have a material adverse impact on our business or reputation

Risks Related to Legal, Regulatory, Tax and Accounting Matters

1. 29We may incur material losses and costs as a result of warranty claims, product recalls, product liability and intellectual property infringement actions that may be brought against us
2. 30all of which could negatively affect our financial condition and results of operations
3. 31We are subject to various U.S. federal, state and local, and non-U.S., laws and regulations, including those related to environmental, health and safety, financial and other matters
4. 32We may identify the need for additional environmental remediation or demolition obligations relating to facility divestiture, closure and decommissioning activities
5. 33We are involved from time to time in legal proceedings and commercial or contractual disputes, which could have an adverse impact on our profitability and consolidated financial position
6. 34While we believe our reserves are adequate, the final amounts required to resolve these matters could differ materially from our recorded estimates and our results of operations could be materially affected
7. 35Developments or assertions by us or against us relating to intellectual property rights could materially impact our business
8. 36Taxing authorities could challenge our historical and future tax positions

Risks Related to the Change in Tax Residency

1. 37We may be subject to various Swiss taxes as a result of the reorganization transaction
2. 38Planned Spin-off of Electrical Distribution Systems Business
3. 39Any changes in consumer credit availability or cost of borrowing could adversely affect our business
4. 40We may lose or fail to attract and retain key salaried employees and management personnel