After enduring heavy losses in its North American operations, French supplier Faurecia says it is on its way to profitability.
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“My goal is to reach break even in North America by the second half of 2008,” Yann Delabriere, who left Peugeot to become Faurecia CEO in February 2007, said in an interview with Automotive News Europe (ANE).
The supplier lost €11.7 million in the second half of last year, down from €54.8 million in the second half of 2006, he said. Delabriere blamed the start of too many programs and plants in North America, “a key strategic market”, for the losses. “We are in calmer waters now so we can better manage our performance,” he said. Faurecia has bounced back by improving its plant efficiency and program management.
Delabriere also said that he wants to increase Faurecia’s sourcing from low-cost countries from its current 35 percent to more than 50 percent by 2010. “We need to accelerate in this area by selecting new suppliers,” he said.
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