During its first quarter conference call, Gentex President and CEO Steve Downing shared that overall sales were down 2% from 2024 due to lower revenue, an unfavorable product mix and new tariff expenses of approximately $650,000 in the quarter.
“As a result of the current and expected tariff escalation in the China market, the company has pro-actively halted production of interior and exterior mirrors destined for customers in the China market. Subsequently, many of the company's customers based in China have canceled or paused orders at this time.”
Downing also shared future estimates that global light vehicle production is expected to be down over 2024 numbers, especially in primary markets of North America, Japan/Korea, and Europe.
"The last few months have been undeniably chaotic as we work to understand the impact that tariffs will have on our supply chain and sales channels. The extent of the impact to revenue for the year depends on how much our sales into the China market will be limited by the counter-tariffs that are in place for our exports, as well as, how much additional cost our OEM customers and consumers will be willing to pay for the additional import tariffs.”
In closing remarks, Downing noted that while tariffs create challenges, Gentex is adjusting expenses and has new technologies in development that should provide strong revenue over the next five years as the company adjusts to market conditions.
