Aptiv invested approximately $1.8 billion in research and development, including engineering, during the year ended December 31, 2023, to maintain its portfolio of innovative products. This includes $492 million co-investment by customers and government agencies.

Aptiv and Hyundai entered into an agreement to restructure Aptiv's ownership in Motional, with Hyundai investing $475 million for an additional 11.7% common equity interest. Aptiv will sell an 11% common equity interest to Hyundai for $448 million and exchange 21% of its common equity for preferred shares, reducing Aptiv's common equity interest to approximately 15%.

Aptiv is focused on enabling and delivering end-to-end smart mobility solutions, enabling customers' transition to more electrified, software-defined vehicles, accelerating the commercialization of active safety and autonomous driving technologies, and providing enhanced user experience and connected services.

Aptiv is focused on maintaining a low fixed cost structure that provides flexibility to remain profitable at all points of the traditional vehicle industry production cycle. The company continually evaluates opportunities to further refine its cost structure, as evidenced by ongoing restructuring programs.

Aptiv is carrying critical inventory items and key components, and continues to procure productive, raw material and non-critical inventory components in order to satisfy customers' vehicle production schedules. The company actively monitors and manages inventory levels across all inventory types.

Aptiv has a strong balance sheet with gross debt of approximately $6.2 billion and substantial available liquidity of approximately $3.4 billion. The company intends to maintain strong financial discipline by targeting industry-leading earnings growth, cash flow generation and return on invested capital.

Economic volatility or weakness in North America, Europe, China or, to a lesser extent, South America could result in a significant reduction in automotive sales and production by Aptiv's customers, which would have an adverse effect on its business, results of operations and financial condition.

The conflict between Ukraine and Russia has had, and is expected to continue to have, negative economic impacts to both countries and to the European and global economies. Disruptions in the supply and volatility in the price of these materials and other inputs produced by Ukraine or Russia could adversely impact Aptiv's business and results of operations.

Changes in laws or policies governing the terms of trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where Aptiv manufacture products, such as China and Mexico, could have a material adverse effect on its business and financial results.

The automotive technology and components industry is highly competitive and is characterized by rapidly changing technology, evolving industry standards and changes in customer needs. Aptiv's ability to anticipate changes in technology and regulatory standards and to successfully develop and introduce new and enhanced products on a timely and cost competitive basis will be a significant factor in its ability to remain competitive.

OEMs are increasingly looking to their suppliers to simplify vehicle design and assembly processes to reduce costs and weight. Suppliers that can provide fully-engineered solutions, systems and pre-assembled combinations of component parts are positioned to leverage the trend toward system sourcing.

Many OEMs are continuing to adopt global vehicle platforms to increase standardization, reduce per unit cost and increase capital efficiency and profitability. As a result, OEMs are selecting suppliers that have the capability to manufacture products on a worldwide basis, as well as the flexibility to adapt to regional variations.

Aptiv is focused on maintaining a low fixed cost structure that provides flexibility to remain profitable at all points of the traditional vehicle industry production cycle. As a result, approximately 97% of our hourly workforce is located in best cost countries.

Aptiv has substantial operational flexibility by leveraging a large workforce of contingent workers, which represented approximately 27% of the hourly workforce as of March 31, 2024.

Aptiv is carrying critical inventory items and key components, and continues to procure productive, raw material and non-critical inventory components in order to satisfy customers' vehicle production schedules. However, as a result of customers' recent production volatility and cancellations, Aptiv actively monitors and manages inventory levels across all inventory types.

Aptiv invested approximately $1.8 billion in research and development, including engineering, during the year ended December 31, 2023, to maintain its portfolio of innovative products. This includes $492 million co-investment by customers and government agencies.

Aptiv acquired Wind River in December 2022 to strengthen its capabilities in software-defined mobility and to enable advanced smart vehicle architecture changes. Wind River is a global leader in delivering software for the intelligent edge for multiple industries, including automotive.

Aptiv is continuing to develop market-leading automated driving solutions such as automated driving software, key active safety sensing and compute technologies capable of supporting safety-critical applications.

In January 2019, the Board of Directors authorized a share repurchase program of up to $2.0 billion of ordinary shares, which commenced in February 2023. As of March 31, 2024, approximately $1,015 million of share repurchases remained available under the program.

During the three months ended March 31, 2024, the Company's Advanced Safety and User Experience segment made investments totaling approximately $40 million in convertible redeemable preferred shares of StradVision, Inc. Due to the Company's redemption rights, the Company's investment in StradVision is classified as an available-for-sale debt security.

Aptiv and Hyundai entered into an agreement to restructure Aptiv's ownership in Motional, with Hyundai investing $475 million for an additional 11.7% common equity interest. Aptiv will sell an 11% common equity interest to Hyundai for $448 million and exchange 21% of its common equity for preferred shares, reducing Aptiv's common equity interest to approximately 15%.

The Credit Agreement utilizes Aptiv's existing sustainability-linked metrics and commitments, that, if achieved, would change the facility fee and interest rate margins. The Company achieved the sustainability-linked targets for the 2022 calendar year, and the interest rate margins and facility fees were reduced from the Applicable Rates.

Economic volatility or weakness in North America, Europe, China or, to a lesser extent, South America could result in a significant reduction in automotive sales and production by Aptiv's customers, which would have an adverse effect on its business, results of operations and financial condition.

The conflict between Ukraine and Russia has had, and is expected to continue to have, negative economic impacts to both countries and to the European and global economies. Disruptions in the supply and volatility in the price of these materials and other inputs produced by Ukraine or Russia could adversely impact Aptiv's business and results of operations.

Changes in laws or policies governing the terms of trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where Aptiv manufacture products, such as China and Mexico, could have a material adverse effect on its business and financial results.