France’s Faurecia forecasts double sales in China by 2018 image

French auto parts supplier Faurecia – partly owned by PSA Peugeot Citroen – announced during its investor day that it outlined the necessary strategy that would lead to doubling sales in China.

Signaling the importance of the Chinese market – the world’s largest market for new cars – the company held its investor meeting in Shanghai, where it detailed its plans to grow its sales twice as faster and retain its high earnings margins. The sales increase should be done over the next four years, reaching in the process deliveries worth more than 4 billion euros in 2018. As the company is expanding in the Chinese market, the forecast for total sales this year stands at 2.3 billion euros.

The parts maker, owned 51% by PSA Peugeot Citroen, says the goal would be met by strengthening ties with international automakers and better business relations with local Chinese carmakers. The company also said it would invest 400 million euros in China during the period, aiming to have 55 production facilities and more than 1,200 engineers working in R&D units. Today Faurecia China has 38 plants and four R&D centers that house 800 engineers.

The French car parts producer also reiterated its global mid-term target of reaching sales worth at least 21 billion euros by 2016, climbing from the 18 billion euros figure accounted last year. The operating margin should also climb – from 3% in 2013 to at least 4.5% by 2016.

Via Automotive News Europe