Auto parts supplier BorgWarner forecast full-year 2025 revenue and profit below Wall Street estimates on Thursday, on expectations of lower automobile production and a strong U.S. dollar.

Shares of the company fell about 1.7% in afternoon trade.

The Western auto industry is grappling with uncertainty induced by U.S. President Donald Trump's tariffs, a consumer hit by inflation and rising competition from affordable Chinese brands.

The stiff competition has caused many automakers to scale back on their electrification ambitions over the past year, impacting companies like BorgWarner, which makes drivetrains among other parts.

"We expect another year of declining industry volumes combined with the uncertainty of tariff implications," BorgWarner executives said on a post earnings conference call.

The company's CFO Craig Aaron said that they would watch for potential costs on tariffs and find a way to share them with their suppliers and customers.

Peer Aptiv forecast 2025 profit above analysts' estimates on Thursday aided by steady demand and cost measures, but expressed caution on potential tariffs that might impact supply chains and vehicle production.

BorgWarner said it expects light and commercial weight vehicle production to fall between 1% to 3% this year, with auto output declining in both North America and Europe.

The Michigan-based company expects 2025 net sales to be in the range of USD 13.4 billion to USD 14.0 billion, below estimates of USD 14.41 billion, according to data compiled by LSEG.

Full-year adjusted profit per share is expected to be between USD 4.05 and USD 4.40, compared with estimates of USD 4.49 per share.