...Tough automotive market conditions are slowing Faurecia's post-acquisition deleveraging. We anticipate uncertainty will persist in 2023 and see the main risks to our base case as gas rationing in Europe or component shortages fueling volatile auto production and persistent cost inflation. Although Faurecia's third-quarter sales reflect firmer recovery in auto production, prolonged supply-chain disruptions and weaker discretionary consumer spending could lead to lower global light-vehicle production growth than the 6%-8% we currently forecast for next year. The recent moderation in some key raw material prices and Faurecia's progressive realization of the cost compensation negotiated with car makers should provide some profitability relief from recent sharp inflation. That said, we anticipate cost pass-throughs to remain a key challenge, due to raw material price volatility and difficulty recovering inflation in labor, energy, and transportation. Faurecia's ability to restore stronger cash...
