Much like most major auto suppliers, Aptiv withdrew its full-year guidance. Aptiv also is not providing a second-quarter guidance because of uncertainties resulting from the pandemic.
Aptiv also sought to bolster its cash position. In a business update March 23, Aptiv said it drew down approximately $1.4 billion on its revolving credit facility.
As of March 31, Aptiv had cash and cash equivalents of $2.1 billion and total available liquidity of $2.2 billion, the company said.
Aptiv’s board of directors also voted to suspend the company’s dividend of approximately $225 million annually, the supplier said.
Aptiv has taken other measures to “manage costs, capital spending and working capital to further strengthen liquidity, including the ramping down of certain production facilities in response to customer plant closures and changes in vehicle production schedules,” the company said.
This includes implementing executive pay cuts, employee furloughs and temporary layoffs, cutting discretionary spending and deploying a global COVID-19 Pandemic Plan across all sites.
The company said all of its sites in China are operating at levels below capacity. Some Aptiv sites in Europe are starting production, and some sites in North America are operating to support essential needs.
Aptiv, of Dublin, ranks No. 20 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $12.87 billion in 2018.
