Cars

French Faurecia buys stake in China car part supplier

(Agencies)
Updated: 2010-07-02 14:26
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PARIS: French car parts maker Faurecia plans to buy a stake in one of the main suppliers to State-owned Chinese automaker FAW Group to build its position in the world's biggest car market.

Faurecia will take the 18.75 percent holding in the capital of Xuyang Group through a reserved capital increase, it said in a statement on Wednesday.

The deal will broaden Faurecia's product range, with complete seats, interior systems, stereos and interior trim, the company said.

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Faurecia is targeting annual sales of 1.7 billion euros ($2.1 billion) in China by 2014, helping sales generated in Asia more than double to 15 percent from 7 percent last year.

Xuyang Group is majority owned by the Municipality of Changchun, in Jilin province, Faurecia said.

The city of Changchun, with the presence of FAW, China's second-biggest carmaker, and its joint ventures with Volkswagen , Toyota and GM, produced some 1.5 million vehicles in 2009, with a target of 2 million from 2011 and 3 million in five years.