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Automotive Equipment
INNOVATION-DRIVEN
LEADERSHIP
By investing the equivalent of more
than 6% of sales in research and
development, Faurecia delivers unrivalled
expertise that creates value for
customers. Based in 22 R&D and D&D
centers, 5,000 Faurecia engineers are
helping to create the car of tomorrow
by working closely with their carmaker
counterparts, as well as with universities
and research laboratories.
Every year, Faurecia experts file patents
for innovations in safety, comfort,
soundproofing, lighter components,
pollution control and recyclability—all
of which provide powerful marketing
arguments. This R&D leadership enables
the company to anticipate end-user
expectations and help improve its own
customers’ reputation for technological
expertise.
Faurecia ranks first in Europe and among
the top three worldwide—as well as acoustic
systems. Three new cockpit plants were
opened in Palencia, Spain; Sao Bernardo da
Campo, Brazil; and Douai, France, while an
acoustic systems facility came on stream late
in the year in Legnica, Poland.
With sales of €593 million, the front-end
assembly business expanded with contracts
from two new carmakers, as well as with
large orders from existing customers and
a leading European specialty carmaker.
Excluding the impact of precious metals
on catalytic converter prices and changes
in exchange rates, exhaust system sales
were unchanged at €1,004 million.
Growth was especially strong in Asia,
where Faurecia was already present with
three joint ventures in China, and where
the local manufacturing base and
customer portfolio were strengthened
during the year with an acquisition of an
equity interest in South Korea’s Daeki
Industrial. In the United States, new orders
for integrated exhaust systems enabled the
company to deepen its presence. It also
continued to develop certain strategic
plants, such as the one in South Africa,
whose catalytic converter output doubled
during the year.
FINANCIAL RESULTS
Consolidated sales rose 2.7% to €9,866
million in 2002, including a 1.4% negative
currency effect and the impact of lower
prices for the precious metals used in
catalytic converters. Excluding converter
sales and changes in exchange rates, sales
ended the year up 9.3% to €9,092 million.
Operating margin came to €256 million,
representing 2.6% of sales. The margin
was stable for the year, but rose during the
second half on the substantial increase in
business, the sustained productivity gains
achieved through the 10/10 plan and
redeployment of the production base, the
implementation of the procurement plan
and the initial impact of application of the
Program Management System. For the full
year, these improvements were partially
offset by two factors: start-up costs
remained high and the terms of certain
contracts implemented between 2000 and
2002 weighed on the operating margin.
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PSA PEUGEOT CITROËN - MANAGING BOARD REPORT