Following a recent acquisition spree, French automotive supplier Faurecia (Nanterre; www.faurecia.com) has begun refocusing and mapping its future orientation. Going forward, the company said it plans to pursue “controlled growth” and apply its resources “selectively.” With annual sales of EUR 1 bn and an operating margin of 4.5-5% targeted up to 2016, the focus will be on following major automotive trends and developing innovative products, in particular for improving fuel efficiency and emissions controls. Geographically, Faurecia has its eyes on Asia and North America.

To expand the potential for fuel efficiency, the company is using processes and manufacturing products aimed at reducing vehicle weight by around 100 kg, along with cutting CO₂ emissions to 10g per kilometer. The list of development projects embraces induction brazing for exhaust systems and lightweight materials, composites and natural fibres for interiors and exteriors. For emissions control, the French OEM supplier has developed the “SCR BlueBox”, a new compact architecture which, it says, significantly increases the efficiency of the NOx reduction systems. Another project is the

Ammonia Storage and Delivery System as an alternative to current liquid ammonia systems that are being phased out. In China, the company plans to participate in the country’s rapid growth and expects to continue to outperform the market in the region, driven by its cooperation with Asian OEMs such as Hyundai of Korea and Nissan of Japan. Sales in the People’s Republic are forecast to double to EUR 3.3 bn in 2016, which then will account for about 15% of total sales. In two years, Asia is expected to represent 17% of sales – up from a current 12%. Europe is seen is accounting for 50% and North America for 33%.

Faurecia bases its forecast on four key trends, assuming market growth of around 10% annually and growing demand for premium and SUV vehicles – segments in which the French player is “strongly represented.” The company sees the Chinese market as moving rapidly to international quality levels, which require global suppliers to be capable of managing global platforms and programmes. To speed progress in Chin, Faurecia is stepping up cooperation with Chinese automakers such as Geely, ChangAn and Great Wall. It also hopes to benefit from the country’s increasingly stringent emissions standards.

Looking at the overall picture, management’s forecast for Faurecia Automotive Systems calls for the business group to see a combined annual growth rate (CAGR) of more than 10% up to 2016, driven by global platforms, technology and a “breakthrough” in Asia. The business group is expected to more than double product sales in the region to around EUR 1.5 bn in 2016, with some of the growth stemming from business with international automakers. Faurecia Emissions Control Technologies is forecast to see a CAGR of 5% over the three-year period.

The Faurecia Automotive Exteriors business, which claims to be Europe’s market leader and among the top three players in South America, will pursue global growth “on a case-by-case basis.” One project is already underway in Russia, another in South America, a third “under consideration” in the Americas. The business group became a leading player in composites technology following the acquisition of Sora Composites – see Plasteurope.com of 23.07.2012.

In the Interior Systems business group, where Faurecia also claims global leadership, product sales of up to EUR 700m are targeted 2016, thanks to joint ventures with ChangAn and Geely and a “breakthrough in Southeast Asia.” The Interior Systems group, which expects product sales of EUR 300m by 2016, will expand its technology base through a recently agreed cooperation with Italian OEM supplier Magneti Marelli – see Plasteurope.com of 29.11.2013 – in human-machine interface (HMI) vehicle interior applications linking materials with electronic applications.