Faurecia has announced that it will take an 18.75% stake in Xuyang Group, an automotive supplier.
Faurecia has signed an agreement with majority shareholder the Municipality of Changchun (Jilin Province) and with the Xuyang Group, in order to ‘accelerate the development of its activities in China’.
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Xuyang Group is described as ‘one of the main suppliers’ to FAW and its international JV affiliates such as FAW-VW.
Faurecia said that the agreement between Faurecia and Xuyang Group broadens the scope of product and services supplied by Faurecia in three strategic areas:
- complete seats: this field will be covered by the joint-venture Changchun Faurecia Xuyang Automotive Seat (CFXAS), specialised in seat frames and owned 60% by Faurecia and 40% by Xuyang Group;
- interior systems, building on Faurecia’s Interior Systems’ existing plant in Changchun which becomes a joint-venture held 60% by Faurecia and 40% by Xuyang Group;
- acoustic modules and interior trim, an area covered by the Xuyang Group plants which will be brought to the joint-venture held 40% by Faurecia and 60% by Xuyang Group.
The city of Changchun is one of the main automotive production centres in China, with the presence of FAW and its joint-ventures with Volkswagen, Toyota and GM, producing some 1.5m vehicles in 2009, with an objective of 2m vehicles per year from 2011 and 3m per year in five years’ time.
In 2014, Faurecia targets EUR1.7bn sales in China, with Asia accounting for 15% of group sales versus 7% in 2009.
