Faurecia SA, Europe’s biggest car interior maker, partly owned by France’s PSa Peugeot Citroen announced its first quarter revenue grew 3.4% thanks to increased Asian sales and a recovery of the European core market.
Faurecia, which is 52% owned by PSA, is moving towards an Asian and North American expansion to alleviate its European dependence – after the region’s market was hit by an almost six years slump.
While the parts maker has a 2016 target of reaching a 4.5 to 5% operating profit, depending on European levels, while sales for this year’s first quarter went up to 4.52 billion euros ($6.25 billion) from 4.37 billion euros in the same period of 2013.
The French company’s target for 2014 is to reach a 2 to 4% sales increase, a positive cash flow and plans to reach double China sales by 2016 – accounting then for around 15% of its total global revenue.
Faurecia is PSA’s last big asset – and the battered French automaker, which is currently Europe’s second biggest, could sell its stake to increase cash capital need to fund its restructuring efforts. Currently, PSA has presented through its new CEO, Carlos Tavares, its goal of restructuring both Peugeot and Citroen’s line-up, faze out some of the models and make the DS premium line-up a separate brand.