Faurecia has formed a new joint venture with Liuzhou Wuling Industry named Faurecia Liuzhou Automotive Seating. The JV will develop, manufacture and deliver automotive seating products to SGMW (the JV between SAIC Motor, General Motors and Liuzhou Wuling Motors) affiliated OEM brands and other customers.
The JV located in Liuzhou, Guangzhou, China will manufacture and sell complete seats, frames and other seat components initially to SGM Wuling from the three existing plants, along with and the upcoming additional plant that is to be built. The annual sales are expected to reach 1.8 billion rmb (Rs 1,832 crore) by 2022.
Hagen Wiesner, EVP, Faurecia Automotive Seating said, “This strategic partnership will contribute to our profitable growth in China. The Group's objective is to achieve 20 percent of our sales with Chinese OEMs by 2018 and 30 percent by 2020. Furthermore, it is a step forward to increase our localisation and expand our footprint in the Southwest of China.”
Liuzhou Wuling Industry, set up in 2007, is jointly owned by Guangxi Auto Group and Wuling Motor Holdings and specialises in auto parts, engines and specialty auto design and manufacturing. Its business covers both auto parts and OEM manufacturing with facilities based in Liuzhou, Qingdao and Chongqing. The annual sales are over 10 billion rmb (Rs 10,180 crore).