Faurecia Group (China) Business Report FY ended Dec. 2015
Business Overview
-Faurecia announced that its global sales in the first half of 2016 reached USD 10.71 billion, a 0.5% increase on a year-over-year (y/y) basis. The Group's China sales totaled EUR 843 million (approximately USD 947 million), an 11.5% decrease y/y. Sales to Chinese OEMs rose 31% y/y, and made up 12% of the company's overall China business. (From news releases issued by multiple sources on August 25, 2016)
Recent Development
-Dongfeng Faurecia Automotive Interior Company, a 50-50 joint venture between Faurecia and Dongfeng Hongtai, began constructing a plant in the Wuhan Economic & Technological Development Zone. The plant will have a land area of approximately 30,000 square meters, and is expected to be completed and start operations by August 2016. It will be able to produce 1 million sets of auto parts such as instrument panels, door panels, noise insulations components, and plastic interior/exterior components per year. Its products will be supplied to Dongfeng Peugeot-Citroen Automobile, Dongfeng Passenger Vehicle Company, Renault, Dongfeng Honda Automobile, and other automakers. Sales are expected to reach CNY 3 billion by 2020. In the second phase of its construction project, the Wuhan facility plans to add a test center and a research center for seats and exhaust gas. (From news releases issued by multiple sources on November 30, 2015)
-Faurecia S.A. announced that its technologies are featured on Dongfeng Motor's Dongfeng Fengshen L60 and Ford's Edge, both of which were presented at Auto Shanghai 2015. For the Dongfeng Fengshen L60, Faurecia produces seat frames and mechanisms, as well as hot and cold ends of the exhaust systems. For the Ford Edge, the company supplies its full interior systems, second and third seat rows, as well as hot and cold ends of the exhaust systems. (From a press release on April 30, 2015)
New Company
-In March 2016, Faurecia Exhaust System (Shanghai) Co., Ltd. was established. It mainly designed, developed and produced exhaust system parts.
-Faurecia S.A. and Beijing WKW Automotive Parts Co. Ltd., a Chinese interior and exterior trim systems manufacturer, signed a 50/50 joint-venture agreement to create an entity named Beijing WKW-FAD Automotive Interior Parts Co. Ltd. (BWKWFAD). Faurecia will have an industrial footprint in China to serve its customers, starting with Infiniti and Volvo. With total planned investment of EUR 14 million (CNY 100 million), BWKWFAD will be specialized in interior aluminum decoration parts for the Asian market, covering development, manufacturing, assembly and marketing. Besides, the company will also provide after-sales services and technical consulting. (From a press release on October 12, 2015)
-Faurecia S.A. and Dongfeng Hongtai, a majority-owned subsidiary of Dongfeng Motor Corporation, have signed a broad partnership agreement through the creation of a joint-venture. This joint venture will serve Dongfeng and its automotive partners for passenger and commercial vehicles and, when fully deployed, will cover all of Faurecia's businesses. The objective of the two partners is that annual sales for this joint venture will reach around EUR 2 billion in the medium term. The first step of the joint venture, for which registration should be completed by the end of May 2015, covers the development, manufacturing and delivery of automotive interior and exterior components. The joint venture has already been awarded important business from Dongfeng Peugeot Citroen Automobile (DPCA) for their vehicles to be built in Chengdu (Sichuan Province). In the course near future, the partnership will be extended to include automotive seating and emissions control technologies. It will develop its footprint in all regions of China where Dongfeng and its automotive partners are present. A new research and development center will be established in Wuhan (Hubei Province) supporting the joint venture in product and program development, testing and validation. (From a press release on March 31, 2015)
Contract
-Faurecia S.A. announced that it is supplying a range of products and solution for the all-new Geely GC9: instrument panel, center console and door panels, as well as hot and cold end emissions control systems for all engine variants. (From a press release on April 27, 2015)
R&D Center
| Location | Year established | Name | Business scope |
| Shanghai | 2005 | Faurecia R&D center | Headquarter & Tech Center |
| Changchun, Jilin |
2012 | Changchun Faurecia Xuyang Automotive Components Technology R&D Center | Design and development of automotive seats and interior products |
| Wuxi, Jiangsu |
2004 | Faurecia (Wuxi) Seating Components Co.Ltd. | Develop and produce seats |
| Shanghai | 2011 | Faurecia Emission Control Technology R&D center | Development of passenger cars, commercial vehicles emission control system |
-In December 2015, Faurecia Emissions Control Technologies held groundbreaking ceremony for new building of China headquarter and R&D Center. The new building will provide cutting-edge test and laboratory facilities for more than 600 engineers. It is mainly enaged in research and development of emission control system for passenger cars and commercial vehicles. The new building covered area of 45,000 square meters and is planned to complete in the second half of 2017. (From a press release on December 18, 2015)