(Reuters) - Aptiv PLC does not expect semiconductor prices to cool off in the near future, the auto parts supplier said on Wednesday.
Even though supply-chain challenges are easing, prices of certain parts remain high, denting profits.
The company said the "real challenge" is in obtaining chips, whose prices have risen 25% to 30%, while supply chains remain tight.
The Dublin-based company said demand for new vehicles remains strong in North America and Europe, but flagged concerns around underlying GDP growth in China.
Aptiv, which counts General Motors (NYSE:GM) and Ford among its customers, also said it is positioned to have "enough" inventory to combat possible disruptions in case of a strike at the two Detroit carmakers by the autoworkers' union.
"We have the flexibility to adjust down and then back up if there is a labor disruption," Aptiv's chief executive Kevin Clark said at the JPMorgan (NYSE:JPM) auto conference.
United Auto Workers (UAW) is seeking improved benefits, including double-digit pay rises and defined-benefit pensions, for all workers in its talks with automakers Ford Motor (NYSE:F), General Motors and Stellantis , also known as the Detroit Three.