Rising LeverageA material rise in debt reduces financial flexibility and raises fixed obligations. If automotive demand softens cyclically, higher leverage could constrain the firm's ability to fund capex, absorb working-capital swings, or pursue opportunistic investments without higher refinancing risk.
Uneven Cash GenerationLarge working-capital swings and prior-year negative free cash flow indicate cash conversion variability. Dependable cash generation is crucial for capex, R&D and debt servicing; inconsistency increases reliance on balance-sheet liquidity or external financing in weaker years.
Margin VolatilityVolatile margins suggest sensitivity to pricing, mix and cost inputs. Without steady margin expansion, returns on capital may lag, limiting reinvestment capacity and making profitability more exposed to commodity, supply or competitive pressures over the medium term.