Faurecia has signed a new framework agreement with Chinese automotive equipment supplier Changchun Xuyang Group to further develop its activities in China, especially with the FAW Group and its international affiliates, Audi, GM, Toyota and Volkswagen.

The deal will see Faurecia and Xuyang Group broaden the scope of their relationship in three strategic areas including a Seating and Interior Systems Technical Centre in Changchun. Faurecia will jointly invest and build up a technical centre in Changchun.

There will also be a new joint venture in Foshan (Guangdong) to support the future production of new FAW-VW models in Foshan.

This will see the creation of three new plants: seating and interior sites will be held 60% by Faurecia and 40% by Changchun Xuyang Group, while a soft trim plant will be held 60% by Changchun Xuyang Group and 40% by Faurecia.

Both groups also intend to look at further cooperation, namely in the field of interior equipment for non-automotive industries.

The city of Changchun is one of the main automobile production centres in China, with the presence of FAW and its joint-ventures with Audi, GM, Toyota and Volkswagen, producing and selling 1.68m vehicles in 2010, with an objective of 1.8m vehicles per year from 2011.

Automotive production capability is expected to reach 3m vehicles by 2015.

Faurecia holds a strategic stake in Changchun Xuyang Group of 18.75%.

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