Faurecia signs deal to supply seats, components for 6 million BMW vehicles

French Tier 1 auto supplier Faurecia announced it was recently awarded a record contract for its seating business by BMW Group. This order represents the highest single order intake ever for Faurecia in terms of sales volume.

The contract includes just-in-time (JIT) assembly for 7 vehicles, as well as seat structures for 10 vehicles including MINI and BMW 2Series. This represents a JIT assembly and seat frames business for over 6 million vehicles.

In order to reduce the number of interfaces and complexity, BMW opted for a vertical integration strategy, entrusting key components such as frames, covers and foams to Faurecia, the current supplier for the JIT business.

“As an industry leader in seat frames and mechanisms, Faurecia is proud to be one of BMW’s preferred partners and to equip such iconic vehicles. Faurecia was awarded this business based on its strong customer intimacy and its strong capabilities for vertical integration and development synergies,” said Thorsten Muschal, Executive Vice-President Sales and Program Management at Faurecia. 

Neither company revealed further detail about the manufacturing locations involved in the contract.

Faurecia recently announced a record order intake of US$ 76.26 billion in a three-year span from 2015 to 2017, including this BMW order intake, an increase of US$ 11.07 billion versus 2014-2016.

Seating accounts for 42% of the Faurecia’s overall sales, with interiors at 31% and clean mobility (emissions controls and energy recovery) at 27%.

Last year, sales at the company’s seating division rose by 9% and operating income rose 20%, with an operating margin of 5.8%.

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