Valeo cuts 2025 sales outlook, sees 750 million euros impact from weak dollar

By Alessandro Parodi

July 24 (Reuters) - French car parts supplier Valeo VLOF.PA cut its 2025 sales outlook on Thursday, citing an adverse currency impact of 750 million euros ($883 million).

The company is the latest to flag forex risks in its quarterly reports, after United States President Donald Trump's April 2 tariff bombshell triggered market chaos and sent the safe-haven dollar tumbling.

The designer and producer of driving assistance systems now expects sales of around 20.5 billion euros ($24.1 billion) this year, down from the 21.5-22.5 billion euros it forecast previously.

That also includes an impact of about 250 million euros due to a reduction of the market for its customers, Valeo CEO Christophe Périllat told analysts.

While auto suppliers have managed to pass costs related to U.S. tariffs on foreign auto imports to carmakers, analysts warn that a drop in demand might be harder to digest, as an increase in prices means less people buy new cars.

Valeo said its second-quarter sales fell 6% year-on-year to 5.35 billion euros, in line with analyst expectations in a consensus provided by the company.

U.S. tariffs are expected to raise car prices in the country by thousands of dollars, but Périllat told reporters that most of the products it sells in the U.S. are produced in North America and not subject to the tariffs.

The group said in April that 90% of its Mexican products shipped to the U.S. were compliant with the United States-Mexico-Canada-Agreement trade deal.

($1 = 0.8497 euros)