Faurecia S.A. Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of
change (%)
Net Sales 18,828.9 18,028.6 4.4 1)
Operating Income 673.3 538.3 25.1 -
Sales by Segments
-Automotive Seating 5,309.1 5,218.9 1.7 -
-Emission Control Technologies 6,747.4 6,350.5 6.2 -
-Interior Systems 4,709.3 4,560.0 3.3 -
-Automotive Exteriors 2,063.1 1,899.2 8.6 -

1) Net Sales
-For FY ended Dec. 2014, the Company's sales grew 4.4% year-on-year to EUR 18,828.9 million. A contributing factor to the Company's growth was the 3.3% increase in global automotive production.

Product Sales Breakdown by Major Customer

FY ended Dec. 31, 2014
Sales (in million EUR)
FY ended Dec. 31, 2014
Sales growth rate (%)*
% of the Company's
total product sales*
VW Group 3,464.4 3.4 24.6
Ford Group 2,059.2 4.5 14.6
PSA Peugeot Citroen 1,934.4 2.4 13.7
Renault-Nissan 1,555.9 8.8 11.1
GM Group 1,145.8 6.4 8.1
Daimler 1,029.3 23.2 7.3
BMW 850.6 (12.8) 6.0
Fiat-Chrysler (excl. Fiat) - (9.9) 4.3
Geely-Volvo - 4.7 -
Hyundai/Kia - 3.1 1.6
Toyota - 9.1 -
*On a like-for-like basis.

Mid-term Plan

Annual sales in China for 2018 double the amount forecasted for 2014
-The Company announced its mid-term target of boosting its annual sales in China to more than EUR 4 billion (approximately JPY 592 billion) by 2018. The target is nearly double the amount forecasted for 2014. The Company also plans to invest a total of EUR 400 million (approximately JPY 59.2 billion) in adding new production facilities and engineering staff in the next five years. The Company will raise the number of its production sites to 55 from current 38 in China, while increasing its engineers by 50% to more than 1,200 from 800 people. Through the project, sales of its emission control systems, seat frames, seat mechanisms, and other interior components are expected to grow significantly in the country. (From an article in the Nikkan Jidosha Shimbun on November 26, 2014)

Overall Financial Target for FY ending Dec. 2016 (as of November 2014)
  • Total Sales: Over EUR 21 billion    *Growth rate 5% year-on-year
  • Operating Margin: between 4.5 - 5.0%
  • Net Cash Flow: around EUR 300 million
  • ROCE: above 20%                    *ROCE: Return On Capital Employed, pretax including goodwill.

Joint Ventures

-The Company announced that it recently signed a new joint-venture agreement with the Japanese equipment supplier Howa Textile Industry Co., Ltd. for the production of Renault-Nissan interior systems in Mexico. The joint venture will take the form of a new entity called Faurecia Howa Interiors (FHI). FHI will be based in Mexico, where it will be managed by the Company from the FIS (Faurecia Interior Systems) Puebla plant and supply interior systems to Nissan's Aguascalientes plant. Production of door panels and interior parts for the Nissan "Navara 4x4 (marketed as the Nissan Frontier in North America) " is scheduled to come on stream in September 2014. It is the second joint venture that the Company has signed with Howa, following an initial partnership in Japan signed in April 2012. It opens up new opportunities for business with Nissan in Mexico, Thailand, Spain, Brazil and South Africa. (From a press release on January 29, 2014)


-The Company has started supplying seat frames for vehicles built on Renault-Nissan Alliance's common module family (CMF) platform. The CMF is the Alliance's scheme to share parts among vehicles. The Company globally received orders for the seat frames of C/D segment models built on the first CMF (CMF1). The Company will produce and supply the products in many markets in North America, Asia, and Europe. (From an article in the Nikkan Jidosha Shimbun on July 4, 2014)

-Major Contracts for FY ended Dec. 2014
Car maker Model Products
Citroen "C4 Picasso" -Front seat structures, Seat reclining mechanisms, Height adjusters, Seat tracks
-Exhaust systems (Hot and cold ends) , SCR converters
-Instrument panels, Center consoles, Certain acoustic parts
"DS6" -Front seat mechanisms and Structures
-Exhaust systems (Hot and cold ends)
-Instrument panels (slush and leather trim), Center consoles, Door panels
"C4 Cactus" -Seat frames and Mechanisms
-All the exhaust lines
-Soundproofing for the firewalls, Front and rear underlay and Front carpets
-Front bumpers, External trims on the trunk, Protective claddings on the vehicle's front and rear bumpers and rear spoiler
Daimler Mercedes-Benz "S-Class" -Instrument panels, Door panels, Center consoles
Audi "A3" -Complete seat systems
-Instrument panels, Inner dash insulator
Volkswagen "Golf" -Seatings, Power seat equipments, Manual mechanisms
-Door panels, Panel inserts
-Front-end module carriers
Nissan "Qashqai", "Rogue" -Front seat frames
Peugeot "308" -Instrument panels, Central consoles, Door panels
Ford "EcoSport" (Thailand) -Instrument panels, Central consoles, Door panels   *Supply from a JV with Summit Auto Seats


R&D Expenditure

(in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 955.9 916.5 943.0
% of Sales 5.1 5.1 5.4

R&D Structure

-The Company has 6,000 engineers and technicians working in 30 R&D centers across 11 countries.

R&D Facilities

-The Company inaugurated its new North American Headquarters and Automotive Seating TechCenter in Auburn Hills, Michigan, USA. The new facility, which encompasses more than 25,000 square meters, includes a full-fledged Seating TechCenter with prototype metal shop; trim development lab; just-in-time (JIT) manufacturing lab; structural testing lab; environmental testing chambers; noise, vibration and harshness (NVH) and electrical lab; and semi-anechoic chamber for sound testing. More than 700 people are now based in the new building. (From a press release on July 16, 2014)

-The Company announced that it has opened a new laboratory specializing in the design and development of seat covers and foams at its R&D center in Santa Fe, Mexico. The 20 engineers and technicians assigned to the facility will work to develop these components. The new laboratory will enable Faurecia Automotive Seating to better anticipate the expectations of its customers with plants in Mexico (Volkswagen, Nissan and Chrysler, among others) and more quickly meet their needs. (From a press release on May 5, 2014)

-The Company announced that it has inaugurated its new TechCenter dedicated to emissions control technologies in India. Covering an area of 2,800 square meters, the site houses almost 200 engineers specializing in the design and validation of emissions control systems for automobile manufacturing programs around the world. This new R&D Center adds to the three existing FECT (Faurecia Emission Control Technologies) plants in Pune, Chennai and Bangalore dedicated to the production of the hot parts and cold parts of exhaust systems, and makes it the Company's fourth site in India. (From a press release on February 4, 2014)

Products Development

"One touch" Function of Folding Rear Seats
-The Company is presenting its "one touch" technology at the 2014 Paris Motor Show, which can be used to automatically fold down the vehicle's rear seats. The new Renault "Espace" crossover is the first Renault production model to feature this innovation. The "one touch" function can be used to fold down any seat in the second and third rows using a control unit in the trunk or using the multi-function display on the instrument panel. The seats and headrests automatically fold into the floor to create a surface that is almost entirely flat, providing more loading room and allowing customers to remodel the car's interior to suit their personal preferences while ensuring the same high standards of safety and comfort for passengers. The electronic system also locks the system when the seat is occupied or the vehicle is moving. (From a press release on October 2, 2014)

Light Weight
-The Company announced that its front seats, floors and exhaust system are featured on Renault's low-consumption demonstrator, "Eolab".
  • The weight of the seat frame has been reduced by using new materials (composites, non-ferrous alloys and aluminum) while its shape has been designed to create more space for the rear passenger's knees, shins and feet. "Cover Carving" technology has also reduced the weight of the back of the front seat by 40%. These innovations have shaved 11 kg off the weight of the vehicle.
  • The composite materials used for the front and rear structural floor have also helped to reduce weight. In total, the composite floor is 16.5 kg lighter than a traditional steel floor (with a 33% decrease in mass).
  • The lightweight construction of exhaust system has been achieved through a combination of reworking the structure of the system and using composite materials, while reducing the thickness of steel components. Hence, exhaust system is 1.5 m shorter and 2.3 kg lighter than a traditional one.
  • (From a press release on September 17, 2014)
-The Company announced that its technologies are featured on the Peugeot "208 Hybrid Air" concept car, which will be presented at the Paris Motor Show 2014.
  • The semi-structural composite tailgate designed by the Company combines plastic with glass fiber to achieve a part that is about 20% lighter (- 2.8 kg) than a conventional steel component.
  • Redesigned the architecture of the exhaust line by reducing the thickness of all steel parts, shaving an average of 0.4 millimeters off the muffler pipes and casings and up to 0.6 mm from the baffles, making an overall weight reduction of 20% (1.9 kg lighter) for the entire line.
  • (From a press release on September 15, 2014)

Investment Activities

Capital Expenditure by Business Segment

(in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Automotive Seating 152.6 117.9 113.1
Emission Control Technologies 139.5 126.4 152.7
Interior Systems 158.7 187.1 179.6
Automotive Exterior 45.5 60.9 88.8
Other 22.9 25.7 23.1
Total 519.2 518.0 557.3


Capital Expenditure by Geographic Area

(in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
France 73.7 79.2 72.5
Germany 54.4 51.2 55.0
Other European Countries 160.0 113.9 152.3
North America 123.0 132.2 104.7
South America 21.3 57.0 87.2
Asia 83.8 81.1 82.6
Other countries 2.9 3.4 3.0
Total 519.2 518.0 557.3

Investment Outside France

-The Company announced that it has inaugurated its new automotive seating plant in Wentzville, Missouri, USA. The facility represents a USD 13 million investment by the Company in the area to support its GM business. The plant started production in September and employs 180 people. The Company produces seats for General Motors' "Chevrolet Colorado" and "GMC Canyon" truck lines during two shifts at the Wentzville plant. The 81,844 square-foot Wentzville plant is the 47th the Company's production site in North America. (From a press release on December 18, 2014)

-The Company announced the inauguration of a new automotive seating plant in Huejotzingo in the state of Puebla, Mexico; the plant will manufacture complete front and rear seats for Nissan. With an estimated investment of MXN 338 million (approximately USD 25.2 million) and expansions set for 2017, the 38,000-square-foot plant is expected to generate 810 jobs by 2016. The facility is the twelfth plant, and first just-in-time Faurecia Automotive Seating (FAS) plant, in Mexico. (From a press release on September 23, 2014)

-Faurecia Automotive Seating Korea Ltd., a Korean subsidiary of the Company, held a ceremony to mark completion of a seat frame plant in Yeongcheon, Gyeongsangbuk-do. The plant was built with an investment of KRW 22 billion (JPY 2.2 billion). Seat frames produced at the plant will be supplied to Hyundai Motor, Renault Samsung and General Motors. This is the Company's second plant in Yeongcheon City following a muffler plant completed in 2011. (From a press release on July 17, 2014)

-The Company announced that it has just opened a new just-in-time assembly plant in Brussels, Belgium, directly inside Audi's production park. Spanning more than 9,000 square meters, the site started its production in January 2014: it delivers front and rear bumpers as well as front-end modules for the Audi "S1" and "S1 Sportback". A German Faurecia plant handles injection and painting of the bumpers and front-end module injection; the components are then sent on to Brussels for assembly and delivery. (From a press release on March 10, 2014)