Europe’s largest maker of car interiors plans to cut about 3,000 jobs in its home region, or 7.5 percent of the workforce, by the end of next year.
The French company intends to cut about 1,500 jobs next year, the same number eliminated in 2012, according to chief financial officer Frank Imbert. The restructuring will lead to about 100 million euros in charges this year and 90 million in 2013, Faurecia said. “Our objective is to stop the bleeding in Europe next year. We have lost significant cash flow in Europe, and we have to adapt,” Faurecia CEO Yann Delabriere said today.
The French supplier, 57 percent-owned by PSA Peugeot Citroen, last month cut its 2012 profit outlook as it forecast a decline in fourth-quarter European sales due to a significant slowdown in auto production.
Faurecia is seeking to expand outside Europe as the region’s car market heads for a fifth straight annual decline. By 2016, the Nanterre-based company plans to grow by 6 percent to 7 percent per year and reach sales of 22 billion euros. In order to do that, Faurecia’s growth strategy will focus on increasing the share of sales outside Europe to 55 percent in 2016 from 37 percent in 2011.