Auto supplier Cadence Innovation LLC is seeking a buyer for its four French facilities in a move to emphasize its production in stronger auto regions.
France is a mature market, with limited customers and three major competitors in the auto exterior market, according to President and Chief Executive Officer Jerry Mosingo in a June 5 telephone interview.
``The growth possibility there is amongst two [automakers], and they're splitting the work between three suppliers,'' he said. ``It makes it really tough in France to get your hands around the business.''
Three of the four plants in France - in Noeux-les-Mines, Pouance, Burnhaupt-le-Haut and Vernon St. Marcel - injection mold bumper fascia, and the fourth has a mixture of fascia and lift-gate frames.
Selling the operations there will free up funds for improvements in growing regions, including Cadence's facility in the Czech Republic, as well as in North America, Mosingo said.
The European sites were once part of Venture Holdings Co. LLC, which went into Chapter 11 bankruptcy protection in 2003.
Backers of Troy, Mich.-based Cadence bought the North American, Czech and French sites in 2005 to create the company.
``We've done a lot to get things in France up and running,'' Mosingo said, but he added that to turn around the four plants, the company would have to install more equipment. It is not wise to invest there, when there are more business opportunities in Eastern Europe, he said.