Negative Equity / High LeverageNegative equity and elevated leverage are structural balance-sheet risks that constrain strategic flexibility, increase refinancing and covenant risk, and can limit access to low-cost capital. This elevates long-term funding costs and sensitivity to demand downturns.
Aftermarket And Commercial WeaknessPersistent aftermarket and commercial vehicle softness reduces recurring, higher-margin revenue and makes total sales more volatile. Structural weakness here undermines diversification, pressures mix-driven margins, and delays recovery of stable aftermarket cash flows.
Compressed EBITDA MarginA materially reduced EBITDA margin points to operational inefficiencies or rising costs that erode the buffer for capital investment and shareholder returns. If sustained, low operating leverage limits reinvestment in R&D and weakens resilience against industry cyclicality.