(AOF) – Faurecia, a Forvia Group company, has been selected by Hyvia, a joint venture between the Renault group and Plug. Faurecia will supply next-generation hydrogen storage systems for series production of the Renault Master H2-TECH, manufactured in France. The hydrogen storage systems will be produced at Faurecia’s plant located in Allenjoie, France, with a production capacity of over 100,000 tanks per year. The launch will take place at the Paris Motor Show.
This will be Hyvia’s first mass production. Drawing on its solid experience as a first-tier equipment supplier for the automotive market, Faurecia brings its know-how in terms of hydrogen storage systems for light commercial vehicles, by offering a solution that makes no compromise between payload, available space and range.
Faurecia confirms its ambition to support its customers in their zero-emissions strategy by providing complete hydrogen storage systems, the best in the field, guaranteed by a solid innovation roadmap and including maintenance services.
Faurecia and Hyvia have recently been confirmed as stakeholders in the Important Project of Common European Interest (IPCEI), which positions the two partners as key players in the French hydrogen ecosystem.
Faurecia and Hyvia are two companies based in France. Production of Faurecia’s hydrogen storage tanks will take place at the Allenjoie plant (France), Faurecia’s first mass production plant for hydrogen storage systems. This factory is equipped with the best manufacturing process, advanced traceability solutions and efficient in-house testing capabilities.
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Key points
– Seventh-largest equipment supplier in the world, created in 1999 under the name Faurecia;
– Sales of €15.6 billion, broken down into 6 activities: clean mobility, lighting, interior systems, seats, electronics (sensors, automated driving, energy management) and vehicle life cycle;
– Business model aimed at becoming the preferred innovation and integration partner of global car manufacturers;
– Open capital with 2 strong positions: the Hueck/Roepke family shareholders for 9% and, for 12%, the strategic shareholders – Elior (5.05%), Peugeot 1810 (3.02%), BPI France (2.16 %) and Dongfeng (1.97%), Michel de Rosen chairing the board of 12 directors, Patrick Koller being CEO;
– Maintenance of financial solidity after the acquisition of HELLA having generated net debt of €8.4 billion at the end of June 2022: capital increase in June and refinancing provided by a banking agreement and a program of disposals of non-strategic assets of €1.5 billion by the end of 2023.
Challenges
– Towards a new 2025 strategic plan expected for the fall;
– Innovation strategy: 63 R&D centers and portfolio of nearly 15,000 patents: dedicated ecosystem supported by academic and technological partnerships, industrial partnerships for the group’s carbon neutrality (Schneider Electric, Engie, Artelia, KPMG), artificial intelligence (Accenture), cloud (Microsoft), data analytics (Palantir) and cybersecurity (GuardKnox), collaboration or acquisition of startups and joint ventures (Michelin, Aptoide);
– “Inspired to care” environmental strategy, validated by the SBTi and aiming for carbon neutrality of scopes 1 and 2 in 2025 and total neutrality in 2045:
through eco-design, renewable energy and investments, for €1.1 billion, in sustainable technologies from 2021 to 2025, creation of a sustainable materials division supported by partnerships: Veolia for 30% of interior modules to recycled plastics by 2025 / SSAB (green steel) for seat structures with a very low CO2 footprint / the GravitHy conglomerate for the industrial project, in Fos-sur-Mer, for the production of carbon-free steel / hydrogen-system solutions batteries, trucks and storage – offered in partnership / public and private “green” bond issues;
– Order intake over €15 billion at the end of June, in strategic and profitable activities: electronics (€5 billion), €4.7 billion for electric vehicles, €4.1 billion for China and €8.7 billion € in premium vehicles and SUVs.
Challenges
– Operational merger with HELLA, integrated since the end of January (€250m of cost savings expected for 2025);
– Impact of inflation: offset at 80% on 1
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semester by the impact on sales prices and contractual policies with suppliers and customers, which will be fully effective on the 2
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semester ;
– Impact of energy shortage risks in Europe: safety stock of €100 million;
– After a 9% increase in sales and a net loss of €296 million on 1
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semester, 2022 objectives confirmed: sales of €23 to €24 billion, operating margin of 4 to 5%, free cash flow at breakeven and debt leverage of 3;
– Suspension of the payment of the dividend for 2021.
Negotiations with builders
On average, equipment manufacturers represent between 60 and 85% of the manufacturing cost of a vehicle. According to the Federation of Vehicle Equipment Industries (Fiev), negotiations are very tense with manufacturers regarding the passing on of increased costs. The price increases concern both electronic components, raw materials, such as steel, nickel, lithium or palladium, energy and transport. Equipment manufacturers mainly negotiate with Stellantis and Renault to set up indices to pass on increases. They are also betting on innovation, differentiation, upgrading and internationalization.