Jerome Rouquet: And I would add on the EBITDA side, again, the run rate that we have at the end of Q3 and what we’re projecting for Q4 indicates as well that we are very much on strike and we’ll be able to scale that up as we go with additional volumes.
Operator: Your next question comes from the line of John Babcock with Bank of America.
John Babcock : I guess just first of which, you’ve obviously done well in terms of business wins this year and seem to be on pace to at least achieve if not exceed your target. And recognizing business wins can be lumpy and uncertain, just generally, do you expect you can keep a similarly strong pace in 2024 based on the discussions you’ve had throughout the past couple of of months and quarters?
Sachin Lawande: Yes. So that’s actually a good question. And I would say that we’ve done really well to evolve and grow our product portfolio over the last couple of years, both on the digitalization front, but also for electrification. So that puts us in a good position to address some of the biggest challenges that the OEMs are facing. And as we have shown this year, this should translate into higher levels of new business wins, which we think should be sustainable, but we’ll still have to see. Again, there are these dynamics of the lumpiness of some of the awards that can spread on the quarter. So it will be not appropriate to be too precise about what we think we can achieve, but we have previously indicated this year we would exceed $7 billion.
We believe we should be in a position to do that. But more importantly, we believe this is a sustainable performance in terms of having a higher level of new business wins. Now, one thing I do want to mention, because this could be also the next question that people may have. Many of the wins this year are going to launch in either second half of 2025 or 2026. So the contribution to 2026, our target certainly will be there and that’s of course factored into our assumptions for the midterm target. But more importantly, it puts us in a great position to continue to grow in the long-term.
John Babcock: And then just as a follow on, I was just wondering, I mean, based on the business wins that you’ve had, obviously, they generally tend to pertain to new models. And I was just wondering if you’re getting any sense from OEMs as to how digital content is changing on some of those next product launches? That would actually be helpful.
Sachin Lawande: Yes. So I think this is the good trend that we have been talking about for some time. So what we’re seeing is that the displays in particular are really getting much bigger and also they are increasing in number. So, passenger side displays are becoming more and more the norm in mid to upper end of the market. And when it’s at the mass market, the mid-market segment, we’re still seeing the growth of displays from much smaller 7, 8 inch displays to 10 and 12 inch displays. Those displays getting larger is also pulling a lot of additional content, both embedded as well as connected content. So the shift towards a connected services approach at Visteon, I think is also very timely because we believe that that’s going to generate a lot of opportunities for us, not only for incremental revenue and margin contribution directly from the connected services themselves, but also in terms of how they make our embedded in-vehicle products more competitive.
We believe we will be one of the few suppliers with an end-to-end capability from the cloud all the way into the car with connected services and the in-vehicle content that I do not believe will be matched by too many other competitors.
John Babcock: And then just last question before I turn it over. Is it possible to get some sense as to the impact of the strike so far for Visteon recognizing it’s relatively limited, 3Q and 4Q would be great, but anything you can provide there would be useful.
Jerome Rouquet: Yes. It’s, Jerome. We’ve been impacted so far obviously with the — with October orders coming down. And I would say that they represent about half of what we’ve assumed in our guidance. So the assumption in guidance is about $25 million to $30 million and half of that is already baked into October.
John Babcock: And that’s 4Q alone, right?
Jerome Rouquet: Yes.
Operator: Your next question comes from the line of Emmanuel Rosner with Deutsche Bank.
Emmanuel Rosner: I was hoping to follow-up on some of the potential implications from the slowdown in EV ramp up by some of your customers and then generally more broadly by multiple automakers. So, can you just try and quantify for us how much is assumed in terms of BMS revenues for this year in your current guidance? And then, what sort of like growth rates — like if you assume, I think you have a $600 million guidance or outlook for 2026 in terms of revenues. What piece of it could be at risk-based some of the latest volume progression?
Sachin Lawande: I think it would be too premature to really talk about mid-term guidance and what could be at risk. I think these challenges that our customers are facing specifically the one customer that I talked about the slower ramp of electric vehicles. We believe that’s on account of some production challenges that we are quite confident they would be able to overcome. So, yes, it has resulted in a slowdown this year, which is factored into our guidance, but we are not reading into this anything beyond that. And as I mentioned, we’ve always been conservative in terms of how we have assumed the BMS volumes in particular. So we’ll have to again look at it more closely. We are not at a point today to be able to give you that insight.
We’ll have to get more data from our customers about next year and the outer years. But we believe there is still sufficient headroom in what we had assumed that we should be in a better position than what might be implied by what you’re hearing about the slowdown in EVs.
Emmanuel Rosner: So, I guess just following up on this and just asking this a little bit differently. How much of your growth of the market over the next few years is assumed to be from BMS? And can you remind us the timing of your next launches in BMS?
Sachin Lawande: Yes. So again, I think the growth over market that we look at is a combination of many things and we can’t necessarily parse out exactly what is coming from each one. So I would like to just again put a context to this. We need a growth over market of about a high-single-digit to low-double-digit in terms of being able to achieve our mid-term guidance. And we have assumed in that mid-term guidance by 2026, electrification revenues to be about $600 million. So that’s the first framework. Now, we believe with where we stand today and the electrification plans for all of our customers, we believe we still have a path to get to that on account of us being conservative in our estimates for the volumes that we had anticipated.
If you go back to our Analyst Day earlier in the year, I will remind everyone that we were being challenged as to why we were being conservative at the time with our estimates for electrification and BMS in particular. This is the reason why. And therefore, I believe we are today in a better shape than what might appear at face value when you hear about this, messages coming from OEMs.
