FAURECIA : Faurecia signs joint-venture agreement with Chang'an Automobile Group Shanghai (China), April 20, 2013 Faurecia signs joint-venture agreement with Chang'an Automobile Group Faurecia, the world's sixth largest automotive equipment supplier, and Chinese automobile manufacturer Chang'an Automobile Group, one of China's largest automobile groups, today signed an agreement for the establishment of a new 50/50 joint-venture, CSM Faurecia Automotive Systems Company Ltd (CFAS) for automotive interiors. The signing of the agreement today in Shanghai establishes the partnership between both parties and is a further demonstration of Faurecia's ongoing commitment to the Chinese automotive market. The new joint-venture has a total planned investment in excess of €35 million (CNY 293 million), which will be contributed equally by both shareholders and will cover the new industrial sites, equipment and process, design and development as well as tooling costs. The CFAS joint-venture will focus on the development, manufacturing and delivery of automotive interior equipment, including: instrument panels, door panels, center consoles and cockpit modules. With this agreement, the joint-venture will strengthen and broaden the technical cooperation between Faurecia and Chang'an. The customers to be served by CFAS are primarily Chang'an Ford (CAF) as well as Chang'an Peugeot and Citroën (CAPSA), with which the joint-venture has already secured new business programs. Within the scope of the agreement, the partners will establish new manufacturing plants in Shenzhen and Hangzhou while transferring the existing Faurecia plant in Chongqing to the new joint-venture. "China has already developed into the world's largest auto market with solid growth perspectives. In 2012, Faurecia's growth outpaced vehicle production growth and enjoyed a 25% sales increase in this dynamic market. We highly value such partnership opportunities in China to further expand our strong foothold in the Chinese automotive market," said Yann Delabrière, Chairman and CEO of Faurecia. Jean-Michel Vallin, President of Faurecia China, said, "This new joint-venture agreement with Chang'an further strengthens Faurecia's tight links with its Chinese customers. We will support Chang'an and its automaker partners to develop recognized brands with our best-in-class vehicle interior technologies and expertise." "We are confident in the success of this new joint-venture and also in the future perspectives of the cooperation between Chang'an and Faurecia," said Xu Liuping, Chairman of Chang'an. "We believe that with Faurecia's innovative concepts and best-in-class solutions, we will further enhance our competitiveness and better achieve our goal of becoming a leading brand not only in the Chinese market but also in the global automotive market." Faurecia has been operating in China for almost 20 years and has developed fast within China's booming automotive industry and considers the Chinese market a major priority. It currently employs 8,000 people, including 600 engineers, and is present in all the main automotive regions in China. In 2012, sales in China reached €1.5 billion, up 25% compared to 2011 outperforming local vehicle production growth. In 2012, Faurecia signed new contracts in China worth €2.3 billion. To accommodate such rapid expansion, the Group opened four new factories bringing the total to 35 at the end of 2012, and targets the operation of 55 plants by 2016. Faurecia expects to more than double its sales in China by 2016 to reach €3.3 billion. Faurecia supplies all major car manufacturers based in China, including Chinese brands. Chang'an Automobile Group, founded in December 2005, is one of China's top four automobile groups, with four key businesses: vehicles, powertrain, auto parts and commerce and trade service. It has nine vehicle production bases in Chongqing, Heilongjiang, Hebei, Jiangxi, Jiangsu, Anhui, Zhejiang, Guangdong and Beijing, as well as 33 vehicle and engine factories and 19 subordinate companies. It has formed a wide range of product lineages, covering passenger and commercial vehicles, and an engine platform with displacement ranging from 0.8L to 2.5L. At the same time, when developing its own brand, Chang'an has developed intensive cooperation in the vehicle area with global well-known automakers, such as Ford, Mazda, Suzuki and PSA Peugeot Citroën. It has also established capitalistic partnerships in auto parts area with TRW, Mitsubishi, Showa Denko, Air International Group and GKN. In 2012, Chang'an sold a total of 1.95 million cars, ranking fourth in the Chinese auto industry, with total revenues of CNY 131.8 billion (€16.2 billion). About Faurecia Faurecia is the world's sixth-largest automotive equipment supplier with four key Business Groups: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. In 2012, the Group posted total sales of €17.4 billion. At December 31, 2012, Faurecia employed 94,000 people in 34 countries at 320 sites, including 30 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange and trades in the U.S. over-the-counter (OTC) market. For more information, visit: www.faurecia.com Faurecia Media Analysts/Investors Contacts Eric-Alain Michelis Olivier Le Friec Director of Financial Communications Head of Media Relations Tel.: +33 1 72 36 75 70 Tel: +33 1 72 36 72 58 Cell: +33 6 64 64 61 29 Cell: +33 6 76 87 30 17 email@example.com firstname.lastname@example.org Chang'an Media Analysts/Investors contacts Li Xin Liang Guiyou Tel.: +86 (010) 6896342 Tel: +86 (010) 68966350 Cell: +86 186 0004 7176 Cell: +86 138 0123 2579 email@example.com firstname.lastname@example.org English news release ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: FAURECIA via Thomson Reuters ONE HUG#1694607
FAURECIA : Faurecia signs joint-venture agreement with Chang'an Automobile Group
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