Faurecia to Buy Controlling Stake in Audio Supplier Clarion?

France’s Faurecia SA plans to take a majority stake in Japanese audio and navigation system supplier Clarion Co. Ltd., The Nikkei reports, without citing sources.

The Tokyo-based newspaper says Faurecia will acquire the equity from Hitachi Ltd., which currently owns 64% of Clarion shares, for about 80 billion yen ($713 million).

Clarion supplies in-car nav systems to such carmakers as Mazda, Mitsubishi Motors and Nissan. But weakening demand for those products has contributed to a 56% drop in Clarion’s operating profits over the past two quarters. The Nikkei notes that Hitachi has been selling off non-core businesses to improve its profitability.

Faurecia supplies automotive seating, audio systems, safety systems, vehicle interiors and “clean mobility” products such as emission controls and electrified powertrain components.