Forvia has announced it will be expanding its partnership with Chinese automaker BYD in Europe.
The firms will operate together in Hungary, where Forvia will spearhead the launch of BYD’s first manufacturing footprint in the region.
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This announcement follows the recent inauguration of a seat assembly plant in Thailand, further consolidating the partnership that began in 2017 with the establishment of the joint venture Faurecia Automotive Parts Co., majority-owned by Forvia.
Over the past seven years, this partnership has fostered extensive cooperation, leading to the opening of seven plants across China and the development of a dedicated R&D centre in Shenzhen.
Patrick Koller, CEO of Forvia said: “Bringing our partnership with BYD to Europe is a major milestone for both our companies. Our collaboration has already resulted in significant achievements in Asia, and we are confident that this expansion will drive further innovation and growth in the European market.”
It comes after Forvia released its H1 2024 results. It cut its sales and margin forecasts, attributed to a slow global auto demand and a dispute with a supplier for its Mexican car interior business. Its operating margin was impacted by a one-off additional cost of €47 million, in relation to the dispute.
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By GlobalDataIn a statement, Forvia said: “In the first half of the year, the automotive environment was characterized by broadly flat automotive production year-on-year and a slowdown of the pace of electrification in Europe.”
Sales are expected to be at the lower end of its guidance of between €27.5 billion and €28.5 billion euros ($29.8 billion and $30.9 billion) this year.
Forvia was formed in 2022 with Faurecia’s acquisition of a controlling stake in Hella – with the combined group known as Forvia – described as the seventh largest automotive supplier in the world.
