The French automotive supplier Faurecia has expanded its cooperation agreement with Chinese equipment manufacturer Changchun Xuyang Group. The French company already had a strategic stake of 18.75% , and now it has three new factories in China.
“This participation allows Faurecia to expand in China, especially with China FAW Group and its international affiliates (Audi, GM, Toyota and Volkswagen), ” said the spokesman in a statement. Xuyang Group is a major supplier of FAW, which is the second largest Chinese automaker, just behind Shanghai Automotive Industry Corporation Group (SAIC).
The agreement provides expansion of relations between Faurecia and Changchun Xuyang Group in “three strategic areas”. The French company will invest jointly in the construction of a technical center in Changchun and actively participate in development and management.
Faurecia will also establish a new joint venture with Changchun Xuyang Group that will see the creation of three new plants, “to accompany the production of future vehicles, FAW-VW in Foshan. These plants produce automotive seating, interior systems, and acoustic modules. Finally, the two companies plan to explore cooperation projects, particularly in the field of interior equipment in industries other than automotive. Faurecia already has 25 factories in China and four research and development centers