© Reuters. FILE PHOTO: Patrick Koller, CEO of French car parts supplier Faurecia, poses before the company’s 2016 annual results presentation in Paris, France, February 9, 2017. REUTERS/ Philippe Wojazer / File Photo
PARIS (Reuters) – Faurecia has no intention of giving up on its pollution control business despite the expected end of its internal combustion engine sales, as the business will remain profitable for the time and help reduce debt, the auto equipment supplier’s executives told Reuters.
“We have over 65% market share (with our two main competitors), so the possibility of us being the last of Mohicans is very strong, and that is very valuable,” said Director executive Patrick Koller said at the press conference of the 89th Paris Motor Show.
“Other companies will suffer because they won’t have the space to operate… and because the customer needs a supplier, we can regain market share without investing in capacity,” he said. more.
Although Koller emphasizes that the plan to go all electricity by 2035 – meaning no exhaust – is a European plan, not that of the Americas or Asia, the amount of pollution is still set to be reduced. revenue share, about 15% by 2025 and less. more than 10% by 2030.
However, generating cash from this business, with a focus on long-term contracts, will help Faurecia reduce the debt incurred in its acquisition of German equipment maker Hella, who created to the Forvia Corporation.
The new group, whose portfolio of activities currently includes hydrogen storage, seating, cockpits, lighting and pollution control systems, will present its medium-term strategy on November 4.
Koller also confirmed the group’s goal of reaching 250 million euros ($244 million) in synergies and one billion euros in asset liquidation, which he announced shortly after the Hella acquisition.
“In terms of synergies, we are completely in line with our business plan. As for asset liquidation, we are completely confident in the ability to deliver billions of dong,” he said.
Following the sale of 33.33% of HBPO for €290 million, the group is “in the final stages of negotiations” for other divestments and is expected to announce the signing of some of these transactions in December. later this year, Koller added.
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