Freya: To Sell Automotive Interior Business

In recent years, the survival environment of the automotive industry has deteriorated sharply!

Major multinational auto parts giants are shifting their business strategies from pursuing economies of scale to focusing on core businesses. They are accelerating the divestment of non-strategic assets to generate cash flow, striving to "survive" in the fiercely competitive industry, and aiming to restructure their competitiveness amidst the current industry upheaval.

Among them, with "AdaptabilityFrench automotive interior, seating, and exhaust systems manufacturer Faurecia, known for being extremely sensitive to market changes, is no exception.

After acquiring the German automotive electronics and lighting systems giant Hella Group in 2022 and entering the global top ten automotive parts companies, Faurecia decided to sell off the group's low-profit assets at the beginning of 2025 to recover cash flow and focus on high value-added businesses.

FreyaIn recent months, there have been numerous rumors about which business to sell, creating a great deal of buzz and noise... Among them, the sunset industry of the exhaust business has been the most talked-about! It is reported that Faurecia has been in contact with several local automotive exhaust system manufacturers, intending to sell its exhaust business in China to domestic buyers.

On November 28, 2025, in response to market rumors and speculations, Faurecia Group, the largest automotive parts manufacturer in France, issued a clarification announcement on the Paris Stock Exchange as follows: "As previously disclosed, Faurecia Group conducted an in-depth strategic assessment of its product lines, resulting in the decision to sell some strong product lines, including assets from the Interior Systems Division."

According to the annual report, the operating profit margin of the interior business is relatively weak compared to other business segments, with a profit margin of less than 2%, which is far lower than its sister divisions - exhaust (8.2%) and seating (5.5%).

The group will divest its interior business, marking the first major move by Faurecia's new CEO Martin Fischer. This action will also generate cash flow, focus on more competitive businesses, and enhance overall profitability.

As early as March this year, shortly after taking office, the new CEO Martin Fischer made divesting assets one of his core tasks. It is clear that the interior will not be the only asset to be sold; other non-core businesses will also face the prospect of being sold off.

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