PARIS--French car-parts maker Faurecia SA (EO.FR) said Tuesday
it has signed an agreement with Dongfeng Hongtai, a subsidiary of
China's Dongfeng Motor Corp., to create a joint venture, marking a
step forward in the French company's development in China.
The joint venture will cover all of Faurecia's businesses, with
the company providing automotive interior and exterior components
for Dongfeng and its partners for both passenger and commercial
vehicles, said Faurecia.
Faurecia and Dongfeng target annual sales of around 2 billion
euros ($2.2 billion) for the joint venture in the medium term, it
added.
"This new joint-venture agreement with Dongfeng represents a
major step forward in Faurecia's relationships with its Chinese
customers," Yann Delabrière, chairman and chief executive officer
of Faurecia, said in a statement.
Last year, Faurecia's sales in China, now the world's largest
auto market, rose to EUR1.69 billion, a rise of 21.5% from the
previous year.
Write to Nadya Masidlover at nadya.masidlover@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires