TRW Automotive 3Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Consumer auto demand remains robust

“Consumer demand in North America remains robust and supports the current level of production. The third quarter seasonally adjusted selling rate averaged about 16.7 million units.”

China sale trended higher, but softened as the quarter progressed

“In China, vehicle sales and production continued to trend higher. However, signs of softening emerged as the pace of growth moderated as the quarter progressed.”

Autonomous driving is going to come in stages

“I think the path that I have outline, as I will say my personal view is still very much intact which is there are many stages that we will see on the development towards a future autonomous vehicle.”

I think we wont have fully autonomous cars on the road yet in 2020

“I am not yet convinced that we will see a fully autonomous vehicle on the road by 2020, which has been a date thrown out there by some commentators. Basically, because I think there are many things, which are yet to be overcome in terms of the legal, insurance, liability management issues.”

There is some increasing interest from rulemakers

“I think the increasing interest from not only from the European, I’ll say, rule makers [European] which is in the 1780 timeframe, but also now from the US regulatory authorities including – I think they are seeing increased value from some of these technologies maybe there will be future rulemaking. It is unclear at this point.”

I don’t see drop off risk, I see stagnation risk, but that’s not what I’m planning for either

“I don’t see drop off risk. I see the stagnation risk, but that’s not my planning assumption. I think, we are going to see a small steady increases year-on-year for the next two to three years now.”