Faurecia plans to close 8 plants

Faurecia plans to close 8 plants

Faurecia, the French supplier controlled by PSA/Peugeot-Citroen, will close eight car seat factories over the next four years, sources familiar with the plan said.

Most of the closures would be in Europe where a slump in car sales is hitting vehicle production, said the sources, who asked not to be identified because the plans had not yet been announced publicly.

The number of Faurecia seat frame manufacturing sites will fall to 14 globally from 22 under plans presented last week by division head Patrick Koller, people with knowledge of the internal meeting said on Wednesday.

European suppliers are refocusing their business on faster-growing markets as the region’s five-year auto slump hurts business at home.

Faurecia, 57.4 percent-owned by struggling PSA, cut 1,700 European jobs last year and told investors to expect a similar headcount reduction in 2013.

The maker of dashboards, seating, door panels and exhaust systems also said earlier this month it would begin winding down production of acoustic components and plastic bumpers at two French plants.

In his presentation Koller did not say how many jobs would be cut as a result of the closures or whether any of the sites could be converted to new activities, the sources said.

Assembly plants built near French car production lines may also be affected, they said, but the company’s larger domestic seat manufacturing plants will be spared.

“Koller told us that there would be no closures of seat frame manufacturing sites in France,” one of the people said.