Superior Industries International Inc's Business Segments

Superior Industries International, Inc. designs and manufactures aluminum wheels primarily for original equipment manufacturers (OEMs) in North America and Europe, as well as for the European aftermarket. Founded in 1969, the company entered the OEM aluminum wheel business in 1973 and developed manufacturing and quality control technologies to meet OEM standards. In 2017, Superior acquired a majority interest in UNIWHEELS AG, later renamed Superior Industries Europe AG, but ceased control of its subsidiary Superior Industries Production Germany GmbH in 2023 following insolvency proceedings. In 2024, OEM aluminum wheels accounted for approximately 92% of the company's sales, supplied to vehicle models from BMW (including Mini), Ford, GM, Jaguar-Land Rover, Lucid Motors, Mazda, Mitsubishi, Nissan, Peugeot, Renault, Stellantis, Subaru, Suzuki, Toyota, VW Group, and Volvo. The company sells aftermarket wheels in Europe under the brands ATS, RIAL, ALUTEC, and ANZIO. Operations are organized into North America and Europe segments, reflecting regional market differences while leveraging common systems. Sales are influenced by automotive industry production volumes, vehicle types, and external factors such as supply chain disruptions, inflation, and geopolitical events. Major customers in 2024 included GM (24% of sales), Ford (16%), VW Group (12%), and Toyota (12%). The loss of significant customers could materially impact financial results.

The registrant's sales are influenced by overall automotive light-vehicle production volumes and specifically by the volumes of vehicles for which it supplies wheels. Larger diameter wheels and premium finishes, typically used on larger cars, light trucks, and premium vehicle platforms such as luxury, sport utility, and crossover vehicles, command higher unit prices. Automotive industry sales and production volumes are affected by factors including consumer demand, dealer inventory, labor relations, trade agreements, raw material costs and availability, energy prices, regulatory requirements, government initiatives, credit availability and cost, and changing consumer attitudes toward vehicle ownership. Following the COVID-19 pandemic, the industry experienced supply chain disruptions and cost inflation, including semiconductor shortages and increased costs of raw materials, labor, and energy. The Ukraine conflict in early 2022 contributed to order volatility and inflationary pressures, particularly energy costs, which moderated in 2023 but remain higher in Europe than pre-pandemic levels. Most of the registrant's customers' wheel programs are awarded two to four years before production begins, with purchase orders specific to particular vehicle models. Automotive manufacturers annually introduce new models, update existing ones, or discontinue models, impacting the registrant's supply contracts. Major customers accounting for 10% or more of annual consolidated net sales in 2024 and 2023 include GM, Ford, VW Group, and Toyota. Competition in the aluminum wheels market is global and based on delivery, customer service, price, quality, and technology. Key North American competitors include Central Motor Wheel of America, CITIC Dicastal Co., Ltd., Prime Wheel Corporation, Enkei, Hands Corporation, and Ronal. Key European competitors include Ronal, Borbet, Maxion, and CMS. The European aftermarket for alloy wheels is highly fragmented, with key competitors such as Alcar, Brock, Borbet, and CMS.