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Faurecia outlines strategy to double sales in China to reach over €4 billion and confirms Group’s mid-term objectives

At its Investor Day held today in Shanghai, Faurecia detailed its strategy to double its sales in China over the next four years and to maintain its high profitability. The Group is planning to grow twice as fast as the market to reach total sales over €4 billion by 2018, up from an estimated €2.3 … Continued

At its Investor Day held today in Shanghai, Faurecia detailed its strategy to double its sales in China over the next four years and to maintain its high profitability. The Group is planning to grow twice as fast as the market to reach total sales over €4 billion by 2018, up from an estimated €2.3 billion targeted for this year. This will be achieved through a strategy of continued growth with international automakers and strengthening relationships with Chinese automakers, including through partnership agreements such as that which the Group already has since April 2013 with Chang’an Automobile Group, one of China’s largest automobile groups.

In 2014, the Group celebrates its twenty year presence in China. During this period the strategy has evolved from one of establishing a manufacturing presence for each of its business groups, to developing engineering and program management capabilities and more recently to establishing world class R&D facilities such as that inaugurated in Shanghai in July 2013.

Faurecia China now has 38 manufacturing facilities and 4 fully-owned research and development centers with
800 engineers. The Group is market leader in emissions control technologies, seat frames and mechanisms and will now grow rapidly in interior systems. Over the next five years the Group will invest 400 million euros in China and anticipates that it will have 55 plants and over 1 200 R&D engineers in the country.

At the occasion of the Investor day, which was almost entirely focused on Faurecia’s development in China, Faurecia also confirmed its strategy and mid-term objectives outlined during its 2013 Investor Day. The Group’s strategy remains focused on steady growth at 5% per year driven in particular by accelerating in Asia, developing value creating technologies focused on fuel economy, emissions control and life on-board and the expansion of product lines for global vehicle platforms.

By 2016 this strategy will result in:

  • Total sales of over €21 billion;
  • Operating margin of between 4.5 and 5.0%;
  • Net cash flow of around €300 million;
  • ROCE 1 above 20%.

For full details see tables in appendix. The full slide set from the 2014 Investor Day is available on the Faurecia website at www.faurecia.com. Faurecia will publish its 2014 annual results on February 12, 2015.

https://www.automotiveworld.com/news-releases/faurecia-outlines-strategy-double-sales-china-reach-e4-billion-confirms-groups-mid-term-objectives/

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