Faurecia (China) Business Report FY ended Dec. 2017
-In 2017, the Company had sales of EUR 16.96 billion. Its operating income totaled EUR 1.17 billion, up 20.6% y/y, representing 6.9% of sales. In the second half of 2017, its operating income increased 21.6% y/y to 7.0% of sales.
-The Company obtained purchase orders of EUR 62 billion from 2015 to 2017, an increase of EUR 9 billion compared to the period from 2014 to 2016.
-In 2017, the Company's value-added sales totaled EUR 2.251 billion (EUR 1.952 billion for 2016). Sales contributed by Chinese OEMs reached EUR 355 million, accounting for 16% of total sales (EUR 218 million and 11% for 2016). Sales in China accounted for 77% of sales in Asia, and 13% of total sales worldwide, an outstanding performance driven by Chinese OEMs and SUVs.
-In April 2017, the Company showcased Green Mobility and Smart Automotive lifestyle technologies at 2017 Shanghai Motor Show. (From a press release on April 20, 2017)
-Faurecia announced its new joint-venture with Liuzhou Wuling Industry Co.Ltd, named Faurecia Liuzhou Automotive Interior Co., Ltd. The joint venture consolidated by Faurecia will develop and manufacture automotive interior products including instrument panels, center consoles, door panels and acoustic products to SGMW affiliated OEM brands and other customers. Located in Liuzhou (Guangxi Zhuang Autonomous Region), the joint-venture targets annual sales of RMB 1.3 billion by 2022 from 3 plants. This new joint-venture follows the joint-venture agreement signed in July 2017 between Faurecia and Wuling Industry, covering Seating activity. (From a press release on November 29, 2017)
-Faurecia announced the finalization of the transaction whereby Faurecia acquired a majority stake in Jiangxi Coagent Electronics Co., Ltd renamed Faurecia Coagent Electronics S&T Co., Ltd. The joint-venture company will be dedicated to develop integrated and innovative in-vehicle infotainment solution. There are strong synergies possible between Parrot Automotive and Faurecia Coagent Electronics. The two companies will be able to leverage a shared commercial and industrial strategy as well as developing a common technology offer led by the combined force of over 700 software engineers by mid-2018. (From a press release on November 6, 2017)
-Faurecia announced that its new joint venture with the pioneering Chinese electric vehicle OEM, BYD. The new company, called Shenzhen Faurecia Automotive Parts Co., Ltd. (70% Faurecia – 30% BYD) aims to develop and manufacture advanced seating solutions for BYD-affiliated OEM brands. The strategic partnership will bring together BYD’s seating production activities in Shenzhen, Xi’an and Changsha. Sales generated by this new company are expected to reach RMB 2.4 billion by 2020. (From a press release on October 31, 2017)
-Faurecia S.A. announced on July 5, 2017, a plan to set up a new joint venture with Dongfeng Motor Parts And Components Group Co., Ltd. to explore a new opportunity in the clean mobility business. The establishment of the joint company will allow them to broaden their already-established alliance in the area of automotive interior components. The purpose of the new company is to provide Dongfeng’s passenger and commercial vehicle brands with advanced clean mobility system solutions. They will build the company in Xiangyang, Hubei, anticipating an operational launch in 2018. In 2021, the new company is expected to generate sales of Chinese yuan (CNY) 1.2 billion. (From a press release on July 5, 2017)
-Faurecia S.A. announced on July 3, 2017, an establishment of Faurecia Liuzhou Automotive Seating Co., Ltd., a joint company with Liuzhou Wuling Automobile Industry Co.,Ltd.. The new company is capitalized at Chinese yuan (CNY) 150 million, owned 50% or CNY 75 million by Faurecia and another 50% or CNY 75 million by Liuzhou Wuling Automobile. Faurecia Liuzhou Automotive Seating will develop, manufacture and sell automotive seats and seat-related products mainly for SAIC-GM-Wuling Automobile. The production will take place at three existing plants and one new plant, whose construction work is slated to begin soon. In 2022, it expects to generate sales of CNY 1.8 billion. (From a press release on July 3, 2017)
-In June 2018, the Company signed a strategic cooperation framework agreement with FAW. The partners will collaborate in future cockpit solutions. They will develop seats that are connected, multi-functional, and with function of prediction. They will bring environmental solutions for passenger vehicles and commercial vehicles by using battery packs, fuel cells, and light weight composite materials.
-On September 27, 2017, Faurecia S.A. renewed its partnership contract with Lectra for its seating business group. The seating business group of Faurecia aims at doubling its production volume by making use of advanced technologies. The renewal of the contract with Lectra will hopefully allow Faurecia's seats, frames, mechanisms and trim covers manufacturing process to gradually evolve toward Industry 4.0. Lectra’s Vector seat fabric cutting solutions are said to be the highest-performance cutting system available on the market to date. Standardizing such system will lead to the improvement throughout the division's fabric cutting facilities. Faurecia has so far implemented more than 60 Vector fabric cutting solutions in production worldwide. (From some releases on September 28, 2017)
-Wuhan Faurecia Tongda Exhaust System Co., Ltd. said that it received a special contribution award from Dongfeng-Peugeot-Citroen Automobile Co., Ltd. The most prestigious award given by the automaker was presented to other suppliers as well, including Dongfeng Plastic Omnium Automotive Exterior Systems Co., Ltd. and Shanghai GKN Drive Line Sale Company Co., Ltd. Wuhan Faurecia Tongda is a joint venture established by Faurecia S.A. and Wanxiang Tongda Co., Ltd. on an equal basis. (From a press release on January 29, 2018)
|Location||Year established||Name||Business scope|
|Shanghai||2005||Faurecia R&D center||Headquarter & Tech Center|
|2012||Changchun Faurecia Xuyang Automotive Components Technology R&D Center||Design and development of automotive seats and interior products|
|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|