Automakers have also flagged that inflation is beginning to take a toll on their balance sheets as they struggle with parts shortage and escalating raw material and energy costs.
“We continue to experience higher commodity, freight and energy costs, as well as wages, in most markets in which we operate, with such pressures expected to persist into 2023,” Magna said in the Friday statement.
The company, which makes a wide variety of parts such as body structure, chassis and powertrain for customers including Ford Motor Co. and Volkswagen Group, said the forecast cut reflects an expected drop in vehicle production in North America and Europe and higher operating inefficiencies.
Magna, based near Toronto, ranks No. 4 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $36.2 billion in 2021.
Reuters contributed to this report.
