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Faurecia, Dongfeng Launch Huge Venture in China
Faurecia SA and Dongfeng Motor Corp.'s Dongfeng Hongtai subsidiary are setting up a joint venture in China to supply interior and exterior systems to the country's passenger and commercial vehicle makers.
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Faurecia SA and Dongfeng Motor Corp.'s Dongfeng Hongtai subsidiary are setting up a joint venture in China to supply interior and exterior systems to the country's passenger and commercial vehicle makers.
Details, including the name of the venture, have not been announced. The new company already has been awarded a supply contract with Dongfeng Peugeot Citroen Automobile's factory in Chengdu. Faurecia is 52% owned by PSA.
When fully launched, the venture will represent all Faurecia businesses in China and generate medium-term revenue of €2 billion per year, according to the French company. The partners expect to complete government registration for the new company in May.
Faurecia says it will initially consolidate the partnership's exteriors operations on an equity basis. But the venture's management and governance structure will enable Faurecia to eventually fully consolidate the business.
Last year Faurecia's sales in China grew 20% to €2.2 billion. The company operated 38 factories and three research and development facilities in the country. It expects to expand to 55 plants and €4 billion in revenue in China by 2018.
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