Faurecia has signed its third Iranian joint-venture agreement, with emissons controls the latest technology unveiled.
The Faurecia Crouse Advanced Exhaust System (FCAES) JV was inked today (2 December) in Paris between Faurecia and MAAD, a Crouse and Avrand joint-venture.
FCAES – the 50/50 Faurecia – MAAD joint-venture will develop and produce emissions control systems for the Iranian automotive market.
The JV will cover both hot end and cold end emissions control systems, based on Euro 5 standard, with first local production scheduled to start at the end of 2017. Total sales are expected to reach EUR50m (US$53.2m) in 2020, representing a 25% market share.
AFISCO, the 50/50 Faurecia–Azin Khodro joint-venture for vehicle interior systems, will develop and manufacture instrument panels, door panels, centre consoles, acoustic and soft trim modules, with start of production in early 2018. AFISCO expects its total sales to reach EUR50m in 2020.
FAPSCO, the existing Faurecia JV for automotive seating, will expand its complete seats, frames and covers activities in the country beyond its current customer, Renault to serve Peugeot, Iran Khodro and other automakers.
FAPSCO expects to grow its business to 340,000 car sets per year and total sales of EUR150m in 2020. With this third joint-venture, all three Faurecia business groups will be present in Iran.
Faurecia estimates Iranian automobile market production to grow from 1m vehicles in 2015 to 1.8m by 2025, representing an average growth of 6% per year.