Faurecia to Cut 3,000 Jobs in Europe

French supplier Faurecia SA says is will shed 1,500 jobs in Europe by year-end and plans to eliminate an equal number in 2013, citing the region's shrinking auto market.

Chairman and CEO Yann Delabriere tells investors that cutting more than 5% of its workforce in the region will save €50 million next year and €100 million in 2014. The company expects to record restructuring charges totaling €190 million in 2012-2013.

Delabriere adds that Faurecia will delay its goal of boosting operating profit to 5% of sales by two years until to 2016. That margin was 4% last year.

The company intends to boost revenue to €22 billion in 2016 from €16.2 billion last year largely by increasing its sales outside Europe from 37% to 55% in that period.

Faurecia predicts its revenue in Europe will dip to €7.6 billion in 2016 from €7.7 billion last year. PSA Peugeot Citroen, which owns 57.4% of the supplier, also is shrinking its operations in the region.

Faurecia aims to triple sales in Asia to €3.4 billion, mainly through expansion in China and South Korea. In North America, the company expects revenue to surge 65% to €4.3 billion in 2016 after nearly tripling from 2009 to last year.