Negative Free Cash FlowPersistent negative free cash flow reduces internal funding for capex, working capital, and shareholder returns. Over months this forces reliance on external financing, increases refinancing risk around model ramps, and constrains flexibility to invest in higher-margin product upgrades.
Elevated LeverageA D/E near 1.15 raises interest burden and financial risk if operational cash conversion weakens. Structural leverage limits strategic optionality, increases vulnerability to cyclical downturns in auto production, and can pressure margins if higher financing costs persist.
Margin VolatilityVariable EBIT/EBITDA margins point to inconsistent operating leverage, exposure to input cost swings, and execution risk across plants or programs. Over time, margin instability complicates forecasting, weakens competitive bargaining and can erode returns on new program investments.