Faurecia has announced its new joint-venture with Liuzhou Wuling Industry, named Faurecia Liuzhou Automotive Seating. The joint venture will develop, manufacture and deliver automotive seating products to serve SGMW affiliated OEM brands and other customers.
Located in Liuzhou, Guangzhou province, the joint venture will manufacture and sell complete seats, frames and other seat components initially to SGM Wuling from three existing plants and one additional plant to be built. The annual sales will reach CNY1.8bn (US$264m) by 2022, Faurecia said.
Hagen Wiesner, EVP of Faurecia Automotive Seating said: “We are very pleased to have signed this joint venture which will enable us to accelerate our sales with one of the leading Chinese automakers. This strategic partnership will thus contribute to our profitable growth in China and the Group’s objective to achieve 20% of our sales with Chinese OEMs by 2018 and 30% by 2020. Furthermore, it is a step forward to increase our localisation and expand our footprint in the Southwest of China.”
Established in 2007, Liuzhou Wuling Industry is jointly owned by Guangxi Auto Group and Wuling Motor Holdings Limited, specialised in auto parts, engines and speciality auto design and manufacturing. It business covers both auto parts and OEM manufacturing with facilities based in Liuzhou, Qingdao and Chongqing. The annual sales are over CNY10bn.