BYD has said it will form a seating products joint venture with Faurecia as part of a move to restructure its component manufacturing businesses.
The new company, called Shenzhen Faurecia Automotive Parts Co., Ltd. (70% Faurecia – 30% BYD) aims to develop and manufacture advanced seating solutions for BYD-affiliated OEM brands.
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The strategic partnership will bring together BYD’s seating production activities in Shenzhen, Xi’an and Changsha. Sales generated by this new company are expected to reach 2.4 billion RMB by 2020, Faurecia said in a statement.
Patrick Koller, Chief Executive Officer of Faurecia said: “Faurecia greatly values this new strategic joint-venture with BYD, a leader in the electric vehicle market in China. It will support Faurecia’s penetration into the New Energy Vehicle market and will accelerate Faurecia’s growth with Chinese OEMs, which will reach 40% of the Group’s sales in China by 2020.”
BYD is a leading NEV automaker in China.
Faurecia says it is focused in three areas of business: automotive seating, interior systems and clean mobility. In 2016, the Faurecia Group posted total sales of EUR18.7bn.
“The joint venture with Faurecia China is the first attempt of the group to spin-off and consolidate its automotive parts business,” BYD said in a statement. “The company expects the establishment of the JV company can help the group become more asset-light, enable the group to focus on the automobile business and enhance the quality and cost control of the seating of vehicles of the group.”
The disposal of the group’s automotive seating business to the JV is “expected to generate a one-time return for the group,” BYD said.
