Faurecia is to set aside more cash for restructuring for this year and 2013, although insists the announcement by large shareholder, PSA Peugeot Citroen, of plans to shutter its Aulnay plant and slash jobs will not have a major impact.
Unveiling its first-half results in Paris today (24 July) that saw the French supplier post consolidated net income down 32% to EUR120m (US$145m), Faurecia largely cited poor European performance, with the PSA move evidence of OEM struggles on the Continent.
Go deeper with GlobalData
However, despite PSA’s huge pruning in its domestic market that could see up to 8,000 jobs go and the Aulnay factory shut, Faurecia insists it will not be making any significant restructuring announcements of its own, although the supplier outlined some financial detail.
“Yann [Delabriere, Faurecia CEO] said we would be provisioning more for restructuring on an annual basis – EUR80m – EUR90m for 2012 and 2013,” a Faurecia spokesman told just-auto from Paris. “There was no particular, big plan or announcement coming.
“We will continue to do what we do on an on-going basis to adjust staffing levels to market levels. He [Delabriere] did not want to comment on PSA – PSA business is only 15% of total Faurecia sales.
“The closure of Aulnay would not have a significant impact on Faurecia. Also he [Delabriere] said what PSA was doing by closing Aulnay, was not cutting production, it was cutting over-capacity.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe spokesman confirmed comments made by the Faurecia chief executive last week in which he said the supply industry had already adjusted capacity during the economic crisis of 2008/2009. “Faurecia has already adjusted its fixed cost base globally by 20% during that period,” he said.
“The large restructuring period is largely over for us – the major adjustment is behind us.”
PSA is due to unveil its half-year results tomorrow.
