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The French automotive parts and seating manufacturer has unveiled its 2020 financial targets and 2025 ambitions.
During its Capital Markets Day held in Paris on May 15, Faurecia detailed its 2020 financial targets and demonstrated how sales from its ‘New Value Spaces for Sustainable Mobility and Smart Life on Board’ will accelerate to reach €6.8 billion by 2025. Faurecia says it intends to exceed €20 billion in annual sales (2017: nearly €17 billion) by 2020, which implies an increase of over +7% a year in a market which currently scores a growth of 2%. Operating margin is expected to reach 8% (2017: 6.9%), with a net cash flow representing 4% of turnover.
With the rise of electric or self-driving cars, the equipment supplier is focussing on the ‘New Value Spaces’, namely clean mobility and smart cockpit. "In 2025, these activities will represent 20% of our turnover", said Patrick Koller, CEO, Faurecia. "Faurecia's strategy is perfectly aligned with the four automotive megatrends: Connectivity, Autonomous Driving, Ride-Sharing and Electrification. The Group has a first-mover position and has rapidly deployed a technology ecosystem which will enable accelerated growth in both Sustainable Mobility and Smart Life on Board”, said Koller adding that Faurecia has already received €3.5 billion worth of orders for these technologies and that sales in New Value Spaces are to reach over 20% of the Group's targeted €30 billion of sales by 2025.
In interior and seating, Faurecia says it can already offer OEMs a full range of solutions and systems integration enabling new and improved user experiences for intuitive HMI solutions, personalised comfort, immersive sound, advanced safety and enhanced health and wellness. The Group is currently developing a ‘Cockpit Intelligence Platform’; an open platform to manage all of the cockpit functions through data analytics, Artificial Intelligence, telematics and cloud services, and says it will be able to increase its content per vehicle by over 40% by 2025, while creating value for OEMs and consumers alike.
Also on the ambitious agenda, each of Faurecia's 300 manufacturing plants worldwide are to be scrutinised under a series of criteria to meet the objective of €250 million in annual savings by 2020. According to Koller, those that show poor performance will not be attributed new programmes or additional investments and could face closure.
Faurecia will be among the speakers at the upcoming ILM Automotive Leather Supply Chain conference, where they will showcase their “Cockpit of the Future” concept. To find out more about the conference click here.