French auto supplier Faurecia SA is hoping to gain a stronger hold on the Chinese market by acquiring a 20 percent stake in Changchun Xuyang Industry Co. Ltd.
Spokesman Olivier LeFriec says China, along with Brazil, is the fastest growing auto market, and that the deal with Xuyang will complement the 15 plants and 3 research and development centers that Nanterre-based Faurecia already has in China.
Faurecia hopes the move will allow it to accelerate its development in China. Xuyang is one of the main equipment suppliers to FAW and FAW-VW, a joint venture between FAW, Audi and Volkswagen.
Xuyang uses various plastic materials to manufacture various auto applications, including interior systems and acoustic parts, LeFriec said.
Faurecia has had a joint venture -- Changcun Faurecia Xuyang Automotive Seat Co Ltd -- with Xuyang since 2001. Under the terms of the new deal, the Xuyang/Faurecia enterprise will extend its business from seat frames to complete seats. It will also reinforce its activities in interior systems and acoustic modules and floor carpets.
