Faurecia, China's Chang'an sign interior systems joint venture

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: April 21, 2013 8:50 am ET
Updated: April 21, 2013 8:52 am ET

Related to this story

Topics Joint Venture, Automotive, Injection Molding

SHANGHAI -- French automotive supplier Faurecia SA used the Shanghai Auto show to unveil a joint venture with China's Chang'an Automobile Group to supply interior systems to the Chinese market, including two new factories making instrument panels, door panels and other parts.

Planned investment in the joint venture will total 293 million Chinese yuan ($47.4 million) and will include new factories in Shenzhen and Hangzhou and the transfer to the JV of the existing Chongqing factory of Nanterre, France-based Faurecia.

At the auto show, Faurecia officials said the venture was its first directly with a Chinese car maker, and said they expect it in particular to help them gain market share with two of Chang'an's international joint venture partners in China, Ford Motor Co. and PSA Peugeot Citroën.

The joint venture, called CSM Faurecia Automotive Systems Company Ltd., will be 50 percent owned by each company, with each partner contributing equally to costs of new sites, equipment development costs.

It will include work for Chang'an Ford and new models launched by the Chang'an Peugeot Citroën joint venture, known as CAPSA, Faurecia said.

It will also supply center consoles and cockpit modules, and broaden the technical cooperation between the two companies, they said in an April 20 statement.

"This is a major change for us," said Nicolas Delahegue, China vice president for Faurecia Interior Systems, in an interview at the Auto Show. "It will give us for sure more access to market share."

Beyond the joint venture, Faurecia executives said they opened four additional factories in the country in 2012, giving them 35 there, as sales hit 1.5 billion euros ($1.95 billion) last year.

"In 2012, Faurecia's growth outpaced vehicle production growth [in China] and enjoyed a 25 percent sales increase in this dynamic market," said Faurecia Chairman and CEO Yann Delabriere, in a statement. "China has already developed into the world's largest auto market with solid growth perspectives."

The company said it is targeting 3.3 billion euros ($4.3 billion) in sales in China by 2016.

Chang'an is China's fourth-largest car maker, selling 1.95 million cars last year with sales of 131.8 billion yuan ($21.3 billion). In addition to Ford and Peugeot Citroen, the company also has partnerships with Mazda and Suzuki.

Chang'an Chairman Xu Liuping said in a statement that the JV will help Chang'an "enhance our competitiveness and better achieve our goal of becoming a leading brand not only in the Chinese market but also in the global automotive market."


Comments

Faurecia, China's Chang'an sign interior systems joint venture

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: April 21, 2013 8:50 am ET
Updated: April 21, 2013 8:52 am ET

Post Your Comments


Back to story


More stories

Image

Cambro investing $30.4 million in new N.C. injection molding plant

April 18, 2014 2:36 pm ET

Foodservice products manufacturer Cambro Manufacturing Co. Inc. plans to set up a satellite production and distribution operation in Mebane, N.C., to ...    More

Image

Increased orders prompt Georg Utz to add capacity, equipment in Indiana

April 18, 2014 12:20 pm ET

Plastic totes and tray orders have picked up to the point where manufacturer Georg Utz Inc. has added machines, silos and material feed systems to...    More

Image

Ascend targets nylon for auto applications, opening propylene monomer unit in Texas

April 18, 2014 10:57 am ET

Materials firm Ascend Performance Materials Inc. is in full operation at its new nylon 6/6 compounding line in Florida and will break ground by the...    More

MGS buying N.Y. medical molding plant from Hospira

April 17, 2014 10:19 pm ET

MGS Manufacturing Group is purchasing the Buffalo, N.Y., injection molding facility and related product line of Hospira Inc., effective July 1. Terms ...    More

Image

German auto supplier Dr. Schneider opens second US plant

April 17, 2014 12:57 pm ET

Dr. Schneider Kunststoffwerke GmbH, a German supplier of plastic interior auto parts, has opened a $29 million manufacturing plant in Russell Springs,...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events