Dauch (DCH) Bank of America Global Automotive Summit summary

Financial outlook and restructuring

• Adjusted cash flow guidance for 2024 is $235M–$325M, before restructuring and synergy costs.

• Restructuring costs, mainly from U.S. to Mexico and Germany to Hungary moves, will drop by half in 2027.

• Synergy implementation costs from the Dowlais acquisition are front-loaded, with $300M annual run-rate savings targeted within three years.

• Acquisition and restructuring costs will fade, driving stronger cash flow in 2027 and 2028.

• Seasonal cash outflows and tariff impacts are expected in Q1, with normal production seasonality for the rest of the year.

Strategic rationale and integration

• The Dowlais acquisition diversifies products, geography, and customers, reducing GM dependence from 40%+ to 25–27%.

• The combined company gains scale, robust business model, and high-margin synergy potential.

• $300M in synergies are targeted: 30% SG&A, 50% purchasing, 20% operations, with 60% run-rate by year two and full by year three.

• Integration is progressing well, with potential upside to synergy targets.

• Vertical integration and insourcing are expected to enhance margins and supply continuity.

Customer and platform diversification

• Top five customers now include GM, Stellantis, Toyota, Ford, and Volkswagen, with thousands of smaller customers added.

• Platform diversification expands with new content on GM T1XX, Stellantis crossovers, BMW, and Toyota platforms.

• The China joint venture (SDS) is profitable, with 65–70% of business from domestic OEMs and strong export potential.

• The company is positioned to support Chinese OEMs' global expansion, especially into Europe and the Americas.

• Electrification adoption rates are lower than forecasted in the U.S. and Europe, with ICE and hybrid platforms remaining important.