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5. Faurecia (China) Holding Co., Ltd. Business Report FY ended Dec. 2022

Faurecia (China) Holding Co., Ltd. Business Report FY ended Dec. 2022

-Factors：

1）In the fiscal year ended December 2022, sales in China reached EUR 5377.1 million. Sales were up 72.5% y/y, mainly due to the Hella acquisition. Organic sales increased 21.6%.
2）In 2022, orders from Chinese OEMs amounted to EUR 2,129 million, representing 8.4% of the Group's total global sales.

-Faurecia's outlook for the fiscal year ending December 2023: Sales of EUR 25.2 billion to EUR 26.2 billion; operating margin of 5% to 6%.

"FORVIA" as the newly combined Group

-Faurecia successfully completed the acquisition of a controlling stake in Hella on January 31, 2022. They are targeting to reach sales above EUR 33 billion, operating margin above 8.5% and about EUR 1.75 billion of net cash flow in 2025. The combined Group operates through six Business Groups – Interiors, Seating, Electronics, Clean Mobility, Lighting and Lifecycle Solutions – with leading positions and critical size. It deploys a portfolio of 24 product lines. The combined Group will extend its reach, strengthening proximity and customer intimacy, accelerating growth in Asia, and providing an enhanced electronics and electrification offer (BEVs & FCEVs). The Group’s exposure to Internal Combustion Engine (ICE) will be reduced to about 10% of its sales in 2025. The quality of these sales is part of the Company’s strategic response to this key transformation challenge for the automotive industry. To align the business models of both companies, Hella has formally established three Business Groups (Electronics, Lighting and Lifecycle Solutions), headquartered in Lippstadt (Germany), each with full P&L accountability, and both companies will continue to converge towards common processes to ensure a consistent Group approach and consolidation. (From a press release on February 7, 2022)

The “Cockpit of the Future” relocates to Shanghai

-Faurecia SE (Faurecia) announces that its main development business activities of the “Cockpit of the Future” have been transferred to the technology center and headquarters of Faurecia China in Shanghai from January 1, 2022. Leveraging Faurecia's well-known method for system integration, the Shanghai-based innovation center will be dedicated to developing innovative cockpit solutions, researching insights into Chinese consumers, and integrating businesses of innovative interior design, the engineering of complete cockpit, the development of Apps, services, and electromechanical architecture, as well as smart marketing. (From a press release dated January 17, 2022)

Strategic Cooperation

-Faurecia signed a strategic cooperation agreement with Chinese vehicle startup Leapmotor. By leveraging their respective expertise and strengths, the two companies will jointly develop a sustainable and high-quality automobile seating supply chain. (From a press release dated October 8, 2022)

Technology Innovation

-FORVIA announced that at the 20th Shanghai International Automobile Industry Exhibition (Auto Shanghai 2023), it will showcase the combined technologies of Faurecia and HELLA, as well as the latest solutions in the following three areas: electrification and energy management, safety and automated driving, and digitalization and personalized experiences in sustainable cockpits. (From a press release dated February 28, 2023)

-The company announced the launch of a mass production solution to the eMirror. The eMirror uses a camera to obtain information about the environment behind the vehicle, perceive road conditions and provide an improved better view while enhancing improving safety in virtue of intelligent driving algorithms. It also features AI algorithms to ensure that the driver is promptly alerted when the camera is dirty or obscured. It is reported that Faurecia’s eMirror products have now passed E-Mark and UN ECE-R46 standard tests. (From a Faurecia official WeChat account press release dated January 17, 2023) 

-Forvia, the merged group of Faurecia and Hella, made a debut at the 5^th China International Import Expo (CIIE). At the CIIE, Forvia exhibited its hydrogen storage system solution specially designed for trucks, the latest eco-friendly seats that reduce carbon dioxide emissions of the whole seat by 30% through modularity and sustainable materials, lightweight door trims made of natural hemp fiber, and the IRYStec self-adaptive display technology capable of automatically making real-time adjustments to the display screen. (From a Hella official website press release dated November 7, 2022)

R&D Center

Factory Construction

-The company announced that Shenzhen Faurecia Automotive Parts Co., Ltd., a joint venture between Faurecia and BYD, opened its sixth factory at Xiatang Industrial Park in Hefei city, the capital of Anhui province. At the same time, the 10,000th set of automotive seat rolled off the production line at the plant. The plant became operational in July 2022 and officially began mass production in August. (From a press release dated September 20, 2022)

-Faurecia Clarion Electronics officially broke ground on a green and intelligent "Factory of the Future" to be built in Fengcheng. The plant will follow industry-leading standards in automation, carbon neutrality, and green building, and upon completion will further strengthen the supply chain for Faurecia's automotive electronics business unit. With Faurecia's acquisition of Hella on January 31, 2022 and the launch of the new group FORVIA, Hella's Car Electronics and Faurecia's Clarion Electronics will be combined to form the Car Electronics Division, which will accelerate the transformation and optimization of both companies in the field of electrification and intelligence. (From a press release dated February 15, 2022)