Faurecia, one of the world’s leading automotive equipment suppliers, and Dongfeng Hongtai, a majority-owned subsidiary of Dongfeng Motor Corporation, one of China’s largest automobile groups, have signed on March 27, 2015 a broad partnership agreement through the creation of a joint-venture.
This joint venture will serve Dongfeng and its automotive partners for passenger and commercial vehicles and, when fully deployed, will cover all of Faurecia’s businesses. The objective of the two partners is that annual sales for this joint venture will reach around 2 billion euros in the medium term.
The first step of the joint venture, for which registration should be completed by the end of May 2015, covers the development, manufacturing and delivery of automotive interior and exterior components. The joint venture has already been awarded important business from Dongfeng Peugeot Citroën Automobile (DPCA) for their vehicles to be built in Chengdu (Sichuan province).
In the course near future, the partnership will be extended to include automotive seating and emissions control technologies. It will develop its footprint in all regions of China where Dongfeng and its automotive partners are present. A new research and development center will be established in Wuhan (Hubei province) supporting the joint venture in product and program development, testing and validation.
Faurecia and Dongfeng have agreed on a governance and general management scheme allowing Faurecia to fully consolidate the business of the joint-venture. Initially, the exterior business will be consolidated by Faurecia on an equity basis.