At its Investor Day held in Shanghai, Faurecia said it is planning to grow twice as fast as the market to reach total sales over EUR4bn (US$4.98bn) by 2018, up from an estimated EUR2.3bn targeted for 2014.
The company says this will be achieved through a strategy of continued growth with international automakers and strengthening relationships with Chinese automakers, including through partnership agreements such as that which the group already has since April 2013 with Chang’an Automobile Group.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In 2014, the group celebrates its twenty year presence in China. During this period the strategy has evolved from one of establishing a manufacturing presence for each of its business groups, to developing engineering and programme management capabilities and more recently to establishing world class R&D facilities such as that inaugurated in Shanghai in July 2013.
Over the next five years the group will invest EUR400m in China and anticipates that it will have 55 plants and over 1,200 R&D engineers in the country.
Faurecia also confirmed its strategy and mid-term objectives outlined during its 2013 Investor Day. The group’s strategy remains focused on steady growth at 5% per year driven in particular by accelerating in Asia, developing value creating technologies focused on fuel economy, emissions control and life on-board and the expansion of product lines for global vehicle platforms.
By 2016 this strategy will result in:
- Total sales of over EUR21bn;
- Operating margin of between 4.5 and 5.0%;
- Net cash flow of around EUR300m;
- ROCE1 above 20%.
