Faurecia to drop 3,000 jobs from European workforce by the end of 2013

Article by Anita Panait, on November 14, 2012

French auto component manufacturer Faurecia is planning to reduce its workforce in Europe by 7.5 percent, equivalent to around 3,000 jobs, by the end of 2013 as it cuts back its exposure in the region. According to Frank Imbert, Faurecia Chief Financial Officer, the parts supplier plans to cut around 1,500 in 2013, the same number that was removed this year.

Faurecia expects its restructuring to result to around EUR100 million ($127 million) in charges this year and around EUR90 million in 2013. Faurecia chief executive Yann Delabriere told investors during a meeting Monday that the company’s objective with the restructuring is to stop its bleeding in Europe in 2013. Delabriere pointed out that Faurecia has lost significant cash flow in Europe, and it has to adapt.

The component maker in October updated its outlook for 2012 to indicate a decline in profit. Faurecia also forecasted a dive in European sales in the fourth quarter of 2012, particularly due to a "significant" slowdown in vehicle production. Faurecia is seeking to expand its operations beyond Europe, perhaps to lessen its exposure in the declining vehicle market in the region, which is headed to its fifth straight annual decline.

The French parts supplier saw its stock drop 20 percent this year, valuing the company at EUR1.29 billion. According to Delabriere, Faurecia aims to grow by 6 percent to 7 percent annually and achieve sales of EUR22 billion by 2016. The parts supplier will focus its growth strategy on increasing the portion of sales outside Europe from 37 percent in 2011 to 55 percent in 2016.

Faurecia also intends to increase its operating profit margin to at least 5 percent of sales by 2016, which is two years later than initially planned. This may be due to lower demand in Europe caused by the current debt crisis in the region. According to Faurecia, which is 57 percent-owned by PSA/Peugeot Citroen, the slowdown in Europe will require further restructuring with a "gradual" recovery not expected to commence until 2014.

Topics: faurecia, europe

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries