According to Faurecia, most regions significantly outperformed their respective market during the first half of the year, but an unfavourable geographic mix resulted in a slight underperformance at Group level. The company reported an operating loss of €114 million in the period (H1 2019: €645 million), which included a €20 million one-off charge related to the coronavirus crisis, and confirmed its 2022 ambition for profitability and cash generation with lower sales prospects, with an ambition to reach operating margin of 8% of sales and net cash flow of 4% of sales, with sales above €18.5 billion in a global market now estimated at 82 million vehicles; still below 2019.

“The accelerated deployment of our key resilience initiatives and additional structural actions will allow us to further increase resilience and return to solid profit and cash generation in the second half of the year. In the medium term, our focus on key priorities in the new post-Covid market environment gives us confidence in our ability to achieve our profitability and cash generation ambition for 2022”, said Patrick Koller, CEO, Faurecia.

During the first half of the year, Group sales declined 36.1% at constant scope and currencies (-16% in Q1 and -55% in Q2) and, in June, sales were down 22% year-on-year. Sales in North America, which represents 24% of the total, declined 41.7% in the first six months of the year, while sales in Asia (also 24% of the total) declined 23.2%. In South America (2% of Group sales), sales were down 42.1% in the period.

In Seating, first-half global sales declined 38% to €2.23 billion. In July, Faurecia announced the establishment of a 50-50 joint venture with BAIC, one of China’s largest automotive manufacturers. The partnership will provide complete seat assembly, seat frames, foams and headrests initially for BAIC Hyundai and BAIC- owned brands.