STOCKHOLM -- Swedish supplier Veoneer forecasts that 2019 organic sales will be at best flat after a steeper than expected sales fall for the final quarter of 2018. The company blames a sharp decline in car production in China and Western Europe.
Several automakers, including Veoneer customer Daimler, have cut forecasts as new emissions rules have hit European vehicle sales, and slowing economic growth in China, the world's biggest auto market, have dented car sales.
Veoneer, which makes high-tech safety equipment such as advanced driver assistance systems, reported an organic sales decline of 9 percent for the fourth quarter, worse than the 7.7 percent fall analysts had expected.
"During the fourth quarter of 2018 we saw a sharp decline in the light vehicle production in China and Western Europe and we anticipate that these markets will continue to show weakness in the first half of this year," Veoneer CEO Jan Carlson said in a statement.
"We currently expect a slight decline in the global LVP for the full year 2019," he said after Veoneer forecast that organic sales would be flat to down slightly versus 2018.