Wednesday, June 7, 2023

Faurecia sells part of its commercial vehicle business in Europe and the US to Cummins for 142 million

The agreement includes transportation to Cummins factories in the Netherlands and another in the United States

Automotive parts supplier Faurecia (now part of the Forvia group) has transferred part of its business in Europe and the United States to a Cummins engine factory in the United States, for 142 million Euros, as reported by the French firm in a statement.

“After a period of exclusive negotiations, Faurecia (…) and Cummins have entered into a share and asset purchase agreement, under which Faurecia will transfer a portion of its commercial vehicle sales business in Europe and the US to Cummins for 142 million in cash,” the company outlined.

Specifically, the agreement includes the transfer to Cummins of two Faurecia plants, one in Roermond (Netherlands) and the other in Columbus (USA), as well as partner operations. Also the integration of these resources and employees in the global operations of the Community, ensuring “long-term viability”.

“This allows Faurecia to focus its activities on ultra-low emission systems for light vehicles and on its hydrogen roadmap. Faurecia’s clean mobility activities in commercial vehicle exhaust treatment will remain in other countries, mainly in China and India,” he explained. of the French.

Faurecia CEO Patrick Koller welcomed the agreement with Cummins to allow his company to “focus on leadership positions” in the hydrogen solutions market.

In addition, he indicated that the results of this transaction will contribute to the program of assets of 1000 million cash from the end of 2023 to the distribution of Forvia.

The closing of the transaction is subject to regulatory approvals and is expected to be completed by the end of this year.

Nation World News Desk
Nation World News Desk
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