US: Faurecia sees "real leap forward" with significant expansion
Component manufacturer, Faurecia, says it has achieved a "real leap forward" in its North America business with rapid growth of 33% in 2011 and an expected increase of 42% this year.
Specifically, Faurecia has expanded its work with Ford through what it describes as organic growth and its acquisition of the Saline operation, improving numbers from EUR370m (US$470m) in 2010 to an expected EUR850m in 2012.
Business with Nissan has risen from EUR13m in 2010 to EUR240m this year, while expansion with Daimler posted figures rising from zero to EUR230m in 2012.
Meanwhile, more work with Volkswagen in Mexico and Chattanooga has seen a rise of 25% in 2011 and 70% in 2012, with commercial vehicle business expected to rise from nothing to EUR90m this year.
"We have a real breakthrough in North America, a real leap forward," Faurecia CEO, Yann Delabriere, told delegates at yesterday's (12 November) Investor Day in London.
"It has been the result of a major revolution in 2010 and since then we have maintained a high growth rate with 42% in 2012. [A] low-cost base is significant in Mexico [and] we expect to achieve EUR4.3bn of sales in North America by 2016.
"We plan only five just-in-time sites to be added between 2013 and 2016 - three in the US at General Motors and Ford and two in Mexico corresponding to businesses with Nissan and GM.
"Profitability in North America is expected to come from the consolidation of our base and stabilisation of the manufacturing footprint...and expansion of our Mexican manufacturing sites."
Faurecia says it is targeting a total of 44 sites in North America by 2016 - it currently has 38 after adding 15 new facilities in 2011 and this year.
It also describes its low-cost base as "significant," accounting for 43% of the direct workforce in 2011.