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March 31, 2020

Faurecia temporarily shutters many plants

Faurecia has shut down a large number of its production sites in Europe and will do the same in North and South America, following similar temporary moves by its customers.

By Rhodri Morgan

Faurecia has shut down a large number of its production sites in Europe and will do the same in North and South America, following similar temporary moves by its customers.

Due to the coronavirus crisis , the full-year 2020 financial objectives Faurecia announced on 17 February are no longer relevant, says the French supplier.

The Group will present its new financial objectives for 2020 as soon as the macro-economic outlook for the rest of the year is sufficiently clear.

Faurecia has implemented a crisis management plan to adapt, in real time, its response to the impact of the pandemic on the Group’s employees, customers and suppliers:

  • First priority is the health and safety of employees and their families. The Group has also implemented drastic measures to manage its cash flow as well as a strict control of expenditure and investments during the slowdown of activity
  • In terms of the safety of its employees and their families, and learning from its experience in China, Faurecia has put in place all the necessary measures to ensure their protection and to prevent the propagation of the virus within its sites. The Group has also implemented an immediate and massive use of home working (all of eligible employees are currently working from home)
  • In terms of financing strategy and cash management, Faurecia has a very solid balance sheet with no significant short-term repayment and financing at a low cost
  • Faurecia has taken all the necessary measures to drastically reduce, in the short term, its costs, development expenses and investments, including putting employees in all sites on temporary unemployment, according to the reduction of the activity faced by the site
  • Beyond these emergency measures, the Group is preparing the safe restart of production as soon as this is possible, including in an environment where the virus is not completely eradicated. This ramp-up is ongoing in China, where all the Group’s sites have now restarted production, with an average capacity utilisation rate of around 70% today

“We are going through an unprecedented crisis of an uncertain duration, even if we are seeing positive signs of normalisation coming from China,” said Faurecia CEO, Patrick Koller.

“We have immediately put in place all the necessary action plans to get through this period and we will continue to adapt our response as the pandemic evolves. Faurecia has significantly improved its operational and financial performance in recent years and will be absolutely ready to accompany the recovery in automotive production when it comes and continue with its transformation strategy.

“In the meantime, all Faurecia teams are focused on the protection of our employees and their families and an efficient management of the crisis in the best interests of Faurecia and all its stakeholders.”

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