Mexican Media Brands
BYD, Faurecia to Form Seating Venture
China’s BYD and France’s Faurecia are launching a joint venture to make automotive seating in China.
Share
Chinese carmaker BYD Co. Ltd. is selling its seating operations to a new joint venture with France’s Faurecia SA that will develop, make and sell automotive seating products to BYD-affiliated vehicle brands.
Faurecia will own 70% of the China-based venture, called Shenzhen Faurecia Automotive Parts Co. Ltd. The remaining 30% stake will be held by BYD. The partners say their new company will be capitalized at 760 million yuan ($115 million) and is expected to achieve annual sales of 2.4 billion yuan ($362 million) by 2020.
The new company will absorb BYD’s seating operations in Changsha, Shenzhen and Xi’an. BYD describes the venture as a “first attempt” to spin off and consolidate its automotive parts business as it focuses on its auto business.
Faurecia says the new company will aid its move into the so-called new-energy vehicle market and bolster its presence in China. The French company predicts 40% of its sales will be in China by 2020.