According to an anonymous source Faurecia will close eight plants in the following four years, most of them located in Europe.
Most of the facilities to be closed are located in Europe, where a drop in auto sales is heading towards a 20-year low. The number of Faurecia’s global plants will drop to 14 from 22 under the strategy unveiled last week by the division head Patrick Koller. The company did not comment on this issue.
Suppliers in Europe are beginning to focus their business on other emerging markets as the region’s 5-year auto slump affects business in the home market. Faurecia is 57.4% owned by the struggling automaker PSA Peugeot Citroen and in 2012 it cuts 1,700 jobs in Europe, telling investors it might make a similar move this year.
Faurecia, which manufactures exhaust systems, door panels, seating and dashboards, announced at the beginning of this month it will reduce production of plastic bumpers and acoustic components at two French facilities. Koller did not mention how many jobs will be cut due to these closures or if the plants will adopt new activities.
“Koller told us that there would be no closures of seat frame manufacturing sites in France,” one of the sources said.