Declining assembly volumes and price pressure cost French suppliers a 7% fall in OE revenues in 2006

Declining vehicle assembly volumes and continuing price pressure cost French automotive suppliers a collective 6.3% drop in sales revenues to €22.6bn last year, according to data collected by their trade association, FIEV.

Of FIEV members’ total sales, sales to OEMs accounted for €18.9bn, down 7% on the 2005 total. Deliveries to the French manufacturers declined by 11%. Components supplied to the aftermarket in France and overseas dropped 2.8% to a value of €3.7bn. Exports, which represent about 45% of FIEV members’ revenues, dropped 1% year on year. Their employee numbers dropped 4% to 118,800.

Nonetheless, the profits from these sales totalled in aggregate €2.1bn, a rise of 72% on the 2005 figure, aided by strong growth in sales to French carmakers’ assembly plants in emerging markets – but FIEV does not expect this performance to be reliably repeated, since the overseas assembly plants are beginning to source more supplies locally.

FIEV’s annual meeting this year departed from tradition by holding a debate on corporate responsibility, economics and sustainability issues, led by Nicole Notat, the president of an NGO called Vigeo. The association has formed groups to continue work on these issues, with the aim of producing a self-evaluation guide for member companies in a year’s time.