During its Investor Day presentation held today in London, Faurecia has presented its strategy and its growth and profitability objectives for the 2012–2016 period. Faurecia aims to grow at 6/7% p.a. and reach sales of €22 billion in 2016. Within a weak European environment, Faurecia’s growth strategy will focus on North America and Asia, with sales outside Europe growing from 37% in 2011 to 55% in 2016. Faurecia has announced its 2016 profitability objectives with an operating margin above 5% and a net debt to EBITDA ratio below 0.5x.
“Our strong customer portfolio, global industrial and R&D footprint, competitive cost base and technology leadership make Faurecia best-positioned to benefit from the globalization of the automotive market and industry technology changes,” said Yann Delabrière, chairman and chief executive officer of Faurecia.
In Europe, where the market is expected to remain weak, Faurecia will focus on securing profitability by adjusting its Western European cost base and extending its Eastern European footprint.
In North America, Faurecia has quadrupled its sales since 2009 and is now positioned, after the Ford Saline acquisition, as the sixth largest equipment supplier. After a phase of rapid expansion of its footprint and the launch of a high number of programs, Faurecia expects to continue to grow above market, to stabilize its footprint and to focus on industrial efficiency and profitability.
In Asia, Faurecia targets a sustained development both in China, the world’s largest automobile market, and in South Korea. Sales in Asia are expected to represent 20% of sales in 2016, while profitability will stay significantly above group average.
The Group’s strategic development will be based on:
- Its four key business groups: Automotive Seating, Interior Systems, Emissions Control Technologies and Exterior Systems, each positioned among the world top three in its market;
- A high level of operational performance resulting from its worldwide production footprint and a competitive cost structure;
- The continuous development of global programs and international vehicle platforms;
- Technology leadership, supported by a worldwide engineering and R&D network, will further drive Faurecia’s product value with a focus on weight reduction, environmental performance and vehicle interior attractiveness.
