The French automotive parts manufacturer Faurecia is targeting for sales growth of above 7 per cent per year to exceed Euro 20 billion by 2020 with operating margin at 8 per cent of sales. It is also aiming for Euro 30 billion in sales by 2025 by creating New Value Spaces representing almost Euro 7 billion.
Speaking at its Capital Markets Day in Paris, Patrick Koller, Chief Executive Officer, said: “Faurecia’s strategy is perfectly aligned with the four automotive megatrends: connectivity, autonomous driving, ride-sharing and electrification. The Group has a first-mover position and has rapidly deployed a technology ecosystem which will enable accelerated growth in both sustainable mobility and smart life on board. We have already received Euro 3.5 billion of orders for these technologies and by 2025 sales in New Value Spaces will reach over 20 per cent of the Group’s targeted Euro 30 billion of sales. Faurecia will improve its profitability to reach an operating margin of 8 per cent of sales in 2020 and generate around Euro 2 billion of cumulated net cash flow between 2018 and 2020 (reaching 4 per cent of sales) whilst accelerating its investment in innovation.”
After three years of record order intake, Faurecia has secured growth of above 7 per cent CAGR between 2017 and 2020 to reach sales of over Euro 20 billion.