Faurecia, one of the world’s largest automotive suppliers, signed a joint venture agreement for its Clean Mobility business with Dongfeng Motor Parts & Components Group Co. in Wuhan, China. The new company aims to provide advanced clean mobility solutions to Dongfeng-affiliated OEM brands for both passenger cars and commercial vehicles. This joint venture builds upon Faurecia’s long-term partnership with Dongfeng, with whom it already has a joint venture for its Automotive Interiors Business.
Located in Xiangyang, China, the new joint venture will begin operations in 2018. The annual sales should reach 1.2 Billion RMB (approximately $176 million USD) by 2021.
Patrick Koller, CEO of Faurecia, said, “We are very much honored to extend our partnership with Dongfeng to our Clean Mobility business and thus bring innovative and breakthrough technologies to the Chinese market. This joint venture builds on the important relationship which Faurecia has developed with Dongfeng over the years and contributes significantly to our strong growth in China.”
Dongfeng Motor Parts & Components Group Co. is a subsidiary of Dongfeng Motor Co. and specializes in the research and development, manufacturing and sales of auto parts. Dongfeng has 16,800 employees and 32 subsidiaries. The annual sales for the group in 2016 were RMB 12 billion (approximately $1.76 billion), which makes it one of the largest auto parts suppliers in China.