On the occasion of the Investors Day organized by Faurecia on the 27th of June in London, the Group wanted to focus on sustainable mobility (Sustainable Mobility), one of the two strategic priorities of the Group with a new experience of life on board (Smart Life on Board). Faurecia has thus revealed the potential for strong profitable growth of its activity in Clean Mobility, which is expected to show a CAGR of more than 7% over the next fifteen years, reaching more than 10 billion euros of sales (excluding monoliths) by 2030, and an operating margin of 15%. These results will be achieved through the acceleration of new technologies for powertrains electrified, and the development of advanced technologies for the reduction of oxides of nitrogen (NOx) emissions for commercial vehicles, trucks, engines at very high power and industrial applications.
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Patrick Koller, executive Director of Faurecia, stated : “While throughout the world the regulation of emissions of CO2 and NOx emissions is getting tougher, the market of sustainable mobility is expected by 2030 a growth of sales excluding monoliths approximately 25 billion euros. Faurecia, a leader on this market, has a strong portfolio of technologies and innovations to increase the content per vehicle for passenger cars, utility vehicles and trucks. The Group also intends to deploy its technologies, and in particular the reduction of NOx acquired from Amminex, in new markets, such as those engines at very high power and industrial applications. Our aim is to offer mobility solutions own all of our customers, while expanding our offering of digital services to the towns. ”
The sales of Faurecia for light-duty vehicles with thermal engines, are higher than those of the market, and substantially independent of the type of engine
The mix of motorization evolves as regulations relating to emissions of CO2 and oxides of nitrogen are tightening in all markets. Faurecia estimates that by 2030, nearly half of all vehicles will be electrified vehicles (hybrids, battery electric vehicles or fuel cell). The regulations may also lead to a strong increase in content per vehicle, as the new technologies become the standard. This trend will be beneficial for Faurecia, which will see its content per vehicle increase, in particular for hybrid vehicles and gas (respectively +70% and +30% by 2025). Thanks to the portfolio of innovations and technologies of the Group, the sales of Faurecia Clean Mobility for light-duty vehicles will be higher than the growth of the market. The Group aims for a turnover of 7.7 billion euros for the light-duty vehicle combustion engine in 2030.
Sales growth of commercial vehicles and trucks stimulated by the regulations in China and India
In China and India, the new regulations will multiply by more than two content per vehicle, as well as for trucks, utilities, agricultural vehicles and works vehicles-to the public. In terms of volumes, these countries represent 48 % of the global market. On the strength of its strategic partnerships and joint-ventures, its global presence, its technology and patented innovations, Faurecia will also benefit from the strengthening of the regulation. The Group aims to increase its current market share from 12% to 27% and a turnover of 1.5 billion euros for utility vehicles and trucks in 2030.
Opportunities for Faurecia on the markets of the engines at very high power and industrial applications in the framework of the reduction of oxides of nitrogen
Important regulations relating to the engines at very high power and industrial applications will soon enter into force. Faurecia estimated that by 2025, 75% of these engines will be concerned, compared to 25% today. The patented technologies of Faurecia for utility vehicles and trucks, as well as its know-how in the field of systems integration, will enable the Group to achieve by 2030 a 20% market share and € 0.7 billion of sales on this market.
Contribution to the growth of Faurecia battery electric vehicles and fuel cell
Faurecia estimated that approximately 11% of vehicles will be electric by 2030. Battery electric vehicles will be the most prevalent, but the Group considers that the number of electric vehicles with fuel cell increases rapidly after 2025, because of their increased autonomy and time to recharge fast. Faurecia will develop technologies for these two types of electric vehicles, including battery packs, composite and hydrogen tanks. The target Group an average content per vehicle of 300, as well as a turnover of 0.8 billion euros in 2030.
Acceleration of profitable growth for Faurecia Clean Mobility
The strict regulations and new technologies of ultra-clean will focus on the profitable growth of Faurecia. The Group is currently developing a technology ecosystem expanded and is accelerating its investments in innovation. Faurecia Clean Mobility has the ambition of becoming leader of the mobility of their own, with technologies and a cost-effectiveness benchmark, as well as strategic independence regardless of the mix of driving. Its financial targets for 2030 are the following :
Sales to value added in excess of € 10 billion (CAGR 2016-2030 of at least 7%)
More than 1.5 billion of operating margin, representing 15% of sales of added value (CAGR 2016-2030 11%)
Conversion rate operating profit margin cash flow higher than 55%
ROCE higher than 30%
The Group also confirmed its objectives to 2018 and its guidance 2017.
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