Faurecia

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Faurecia
Type Public
Traded as EuronextEO
Industry Automotive
Founded 1997
Headquarters Nanterre, France
Number of locations 34 countries
Area served International
Key people Yann Delabrière, CEO
Products Exhausts, Seats, Interiors and Front Ends
Services Design and manufacture of automotive sub-systems for the Volkswagen group, PSA Peugeot Citroën, Renault-Nissan, Ford, General Motors, BMW, Daimler, Fiat Chrysler, Toyota, Hyundai-Kia and other automotive OEMs
Revenue Increase €18,028.6 million (2013)
Operating income Increase €538.3 million (2013)
Net income Decrease €87.6 million (2013)
Total assets Increase €8,330.8 million (2013)
Total equity Increase €1,642.3 million (2013)
Employees 97,419 (2013)
Website http://faurecia.com

Faurecia is the 6th largest international automotive parts manufacturers in the world; in 2013 it was #1 for vehicle interiors and emission control technology.[1] One in four automobiles is equipped by Faurecia. It designs and manufactures seats, exhaust systems, interior systems (dashboards, centre consoles, door panels, acoustic modules) exterior modules (front ends, exterior systems and shock absorption systems) and decorative aspects of a vehicle (aluminium, wood). Faurecia's customers include the Volkswagen group, PSA Peugeot Citroën, Renault-Nissan, Ford, General Motors, BMW, Daimler, Fiat/Chrysler, Toyota and Hyundai-Kia among others. Headquartered in Nanterre, France, Faurecia employs 5,500 engineers and technicians. The company operates over 320 production sites and 30 R&D centres in 34 countries worldwide, with 460 patents filed in 2012. About half of these sites are manufacturing plants operating on the just-in-time principle. Faurecia joined the United Nations Global Compact in 2004. While French car manufacturer PSA Peugeot Citroën is Faurecia's controlling shareholder, holding around 57.4% stake, Faurecia is run as an independent company.[2]

History[edit]

A Bertrand Faure label from an old Peugeot automotive seat

Beginnings: seats for Paris Metro trams[edit]

In 1914, Frenchman Bertrand Faure opened his first workshop, which produced seats for tram cars for the Paris Metro. Faure's company was then known as the Bertrand Faure Group (BFG). In 1929, fifteen years after BFG's founding, the company acquired a patent license for an efficient production method for the manufacture of spring mattresses and seats for the automotive and tram car industries. After World War II the demand for these items expanded dramatically. In the second half of the 20th century, the BFG company further expanded its product lines to include seats, exhaust systems and steering columns.

Peugeot's 1988 buyout[edit]

In 1987, French manufacturer Peugeot merged the daughter companies AOP (Aciers & Outillages Peugeot - Peugeot steel and tools) and Cycles Peugeot and eventually formed the new company, ECIA (Equipements et Composants pour l'Industrie Automobile - Equipment and Components for the Automotive Industry). In 1988 the Peugeot group succeeded in gaining a controlling interest in BFG through a leveraged buyout. Under the direction of the Peugeot group, BFG began acquiring a significant proportion of ECIA shares.

The Faurecia Group is born[edit]

On 11 December 1997, BFG launched a takeover bid which was intended to increase its direct and indirect shares in ECIA to 99 percent. This marked the birth of the Faurecia Group. The final official merger and creation of the Faurecia group took place two years later and resulted in a business with 32,000 employees, a turnover exceeding 4 billion euros and an international presence.

Expanding market share in Europe[edit]

In 1999, Faurecia acquired the American company AP Automotive Systems. This allowed the company to expand its exhaust systems business in the North American market. Another acquisition that followed just a year later: Sommer Allibert, a company that specialized in vehicle interiors. Sommer Allibert was broadly established in Germany and Spain. As a result, Faurecia gained significant market share in Europe, especially in the area of door panels, instrument panels and acoustic packages. The acquisition was financed through the parent company, PSA Peugeot Citroën, which increased its shareholding in Faurecia to 71.5 percent with a continued controlling interest in the company. The parent company remains controlled primarily by members of the Peugeot family.

In 2006, the Faurecia Chairman and Chief Executive, Pierre Levi resigned amidst bribery investigations.

In November 2009, Faurecia announced that they had signed a deal to acquire EMCON Technologies, an integrator of emissions control technologies for passenger and commercial vehicles. Faurecia will buy the US-based emission control technologies group for 20.9 million new Faurecia shares, cutting Peugeot's Faurecia stake to 57.4% from 70.85%.[3]

Greener product solutions[edit]

In January 2011, Faurecia announced that it would take a strategic 21.2% stake in Amminex A/S – a Danish company with expertise in the treatment of nitrogen oxides, and the inventor of the Ammonia Storage and Delivery System (ASDS). This transaction, valued at DKK 146.4 million (EUR 19.6 million) in cash, was intended to broaden its portfolio of product solutions for reducing nitrogen oxides (NOx) from diesel engines.

Building business in Asia[edit]

The company has since 2010 been pursuing growth in Asia, particularly to gain a foothold in the large and rapidly growing automotive markets of India and China. In 2011 Faurecia announced a series of factory expansions in China’s Guangdong province; that year it had employed 6,000 people in China.[4] Then, in March 2012, the company announced that it would build a new, 215,000 ft2 auto components plant in Dongguan, a city in southern China.[A1] In India, Faurecia employs about 1,600 people, 700 of which are engineers. Currently, it operates nine manufacturing plants and two technical centres in the country, representing its Emissions Control Technology, Automotive Seating, Interior Systems and Automotive Exteriors business groups.[5]

With a production site in Nizhny Novgorod, Russia, Faurecia announced plans to invest over $38 million to build two autoparts plants in Kaluga, the country’s automobile cluster. One plant will produce exhaust systems for combustion engines and the second one will produce interior parts.[6]

Expanding in South America[edit]

In July 2012, in Limeira (State of São Paulo, Brazil), Faurecia inaugurated its largest emissions control technologies production facility in South America, an associated technical centre and the product group’s headquarters for South America. The technical centre provides engineering and development activities for car manufacturers in South America.[7]

Timeline[edit]

1914:
Bertrand Faure opens a workshop to produce seats for trams and Metro trains. His company is known as the Bertrand Faure Group or BFG.

1929:
BFG acquires Epéda spring patent and begins production of seating systems for the automotive market.
1945:
Peugeot begins production of automotive components, bicycles, and motorcycles through subsidiaries Aciers et Outillage Peugeot and Peugeot Cycles.
1987:
Aciers et Outillage Peugeot and Peugeot Cycles are merged to form ECIA; Faure acquires Delsey and Luchaire.
1988:
BFG is acquired in a LBO backed by Michelin, Michel Thierry, Peugeot, and others to block a takeover attempt by Valeo.
1991:
BFG acquires Rentrop in Germany.
1997:
BFG agrees to be acquired by ECIA, forming Faurecia.
1999:
Faurecia acquires AP Automotive Systems in the United States.
2001:
Faurecia acquires the automotive components operations of Sommer Allibert.
2003:
Faurecia wins a $2 billion contract for production of cockpit components for Chrysler in the United States.
2012:
Faurecia Interior Systems set up its R&D centre in Pune, India, with plans to employ 800 people there.[8] Faurecia has standardised operations worldwide and its system of excellence in production helped it reinforce its efficiency and product quality. This year the group earned a number of awards from their clients all over the world.

2013: 

Japan's Chamber of Commerce (CCIFJ) recognised Faurecia's strong 2012 progress in the country with the "Jury's Special Award" at the French Business Awards 2013.[9]

Michel Favre will join Faurecia as the Financial Director in September 2013.

Business Groups[edit]

Faurecia Emission Control Technologies[edit]

Faurecia is the world's largest supplier of exhaust systems. One in four vehicles around the world is fitted with a Faurecia exhaust system.[10] Faurecia develops and produces entire exhaust systems, from the manifold to the tail pipe. The group developed the Diesel Particulate Filter with PSA, contributing to the development of "clean" cars by treating pollutants (e.g. nitrogen oxides) and recovering energy. This group accounts for 35% of the company's sales.[11]

Faurecia Interior Systems[edit]

Faurecia is the world's largest supplier of vehicle interior parts.[12] It develops instrument panels, center consoles, complete cockpits, door modules, door panels and acoustic solutions[13] for all types of vehicles. This group accounts for 25% of the company's sales.[14]

Faurecia Automotive Exteriors[edit]

Faurecia sells front end carrier, bumpers and other parts that make up the vehicle exterior. This group accounts for 10% of the company's sales.[15]

Faurecia Automotive Seating[edit]

Faurecia, the world's number three seat supplier designs and produces the complete seat and its main components: frames, adjustment mechanisms, runners, foam and covers, and safety and comfort features. This group accounts for 30% of the company's sales.[16]

Faurecia logo with the company's tagline

Research and development[edit]

The group's R&D efforts are focused on three areas:

  1. environmental protection: developing emissions control technology, energy recovery and using bio-based materials.
  2. reduction of fuel through the use of lighter materials (for seats, bumpers and interior equipment accounting for up to 20% of a vehicle’s total mass).
  3. solutions for comfort and style customisation.

Overall, the company employs 5,500 engineers and technicians in 30 research and development centres.[17]

In October 2012, the Product Development and Management Association named Faurecia an ‘Outstanding Corporate Innovator’ at its 36th annual global conference. The award recognised Faurecia’s innovation process, which monitors emerging trends inside and outside the automotive world, developing trending ideas into products.[18] Also in 2012, Faurecia received an innovation award from its client PSA. With this process, Faurecia files an average of 300 patents annually and in a number ofareas: products, materials and production processes. 

Since 2010, Faurecia has set up a number of innovation centres, both in France and abroad. These include a technical centre for Faurecia automotive seating in BrièresFrance (established 2011),[19] a TechCenter dedicated to Emissions ControlTechnology in Limeira, Brazil (established 2012),[20] and a new TechCenter centre in Pune, India (established 2012) for interior systems, automotive seating and automotive exteriors.[21] 

Faurecia also maintains a number of partnerships with suppliers, research institutions and academia. In 2011, for example, Faurecia Automotive Seating set up an international teaching chair with the Ecole Centrale de Nantes engineering school in France.[22]

References[edit]

  1. ^ "Top 100 Global Suppliers". Automotive News Top100 OEM Suppliers 2009. Automotive News. 14 June 2010. 
  2. ^ http://www.bloomberg.com/news/2012-05-12/faurecia-is-run-as-an-independent-company-ceo-tells-investir.htm
  3. ^ http://online.wsj.com/article/SB10001424052748703932904574511121742324370.html 
  4. ^ http://www.plasticsnews.com/article/20120314/NEWS/303149934/faurecia-continues-chinese-expansion
  5. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2012/faurecia_pr210612-ftcipune-english-final.pdf
  6. ^ http://www.plasticsnews.com/article/20120109/NEWS/301099952/faurecia-to-establish-two-plants-in-russia
  7. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2012/faurecia_pr050712-fectlimeira-english-final.pdf 
  8. ^ http://timesofindia.indiatimes.com/business/india-business/Faurecia-Interior-System-opens-centre-in-Pune/articleshow/14466916.cms
  9. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2013/faurecia_pr130201-ccifj_award-english.pdf 
  10. ^ "Faurecia inaugure à Bavans (France) son Centre mondial de R&D- Innovation des technologies de contrôle des émissions". Communiqué de presse 2010. Faurecia. 2 April 2010. 
  11. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2013/faurecia_pr120213--FY2012--anglais--FINAL.pdf 
  12. ^ http://europe.autonews.com/apps/pbcs.dll/article?AID=/20120424/ANE/304249943/faurecia-first-quarter-sales-rise-on-n-america-asia-demand#axzz2QFQOA36h
  13. ^ http://www.faurecia.com/en/about-us/interior-systems
  14. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2013/faurecia_pr120213--FY2012--anglais--FINAL.pdf 
  15. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2013/faurecia_pr120213--FY2012--anglais--FINAL.pdf 
  16. ^ http://www.faurecia.com/pressroom/all-press-releases/financial-press-releases/2013/faurecia_pr120213--FY2012--anglais--FINAL.pdf
  17. ^ http://www.faurecia.com/files/media/site_com_corporate/document/ANGLAIS%20internet/AMF%20REGULATED%20INFORMATION/Annual%20financial%20reports/ddr_2012_va_pour_mel.pdf
  18. ^ http://www.prnewswire.com/news-releases/faurecia-recognized-as-one-of-the-worlds-top-innovation-companies-by-product-development--management-association-175800171.html
  19. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2011/ANG_faurecia_pr061011--TechCenter--fran%C3%A7ais--FINAL.pdf 
  20. ^ http://www.faurecia.com/files/media/site_com_corporate/Press%20Releases/2012/faurecia_pr050712-fectlimeira-english-final.pdf  
  21. ^ http://www.faurecia.com/files/media/site_com_corporate/Press_kits/pune_techcenter_presskit_210612.pdf 
  22. ^ http://www.ec-nantes.fr/version-francaise/l-ecole/partenaires-et-reseaux/partenaires-industriels/faurecia-104111.kjsp

External links[edit]