Forvia is hoping its new contracts with Chinese manufacturers will help offset flailing auto demand from domestic manufacturers.
21 Oct 2024 | 7476 Views | By Autocar Professional Bureau
Forvia, the France-based car part supplier, has clinched new deals with BYD and Xiaomi, it stated on Monday, sending the shares up 10%, Reuters reported.
Forvia is hoping its new contracts with Chinese manufacturers will help offset flailing auto demand from domestic manufacturers, the newsire noted. It has also ...
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Forvia, the France-based car part supplier, has clinched new deals with BYD and Xiaomi, it stated on Monday, sending the shares up 10%, Reuters reported.
Forvia is hoping its new contracts with Chinese manufacturers will help offset flailing auto demand from domestic manufacturers, the newsire noted. It has also bagged deals with Chinese auto makers Li Auto and Chery, the newswire noted.
"Xiaomi is one of the key telecom companies entering now the EV and car market and it's very good that we are able to extend our reach with Chinese manufacturers also with the latest ones," Forvia's finance chief Olivier Durand said on an investor call.
The company noted it expected a return to outperformance compared to automotive production in China in 2025, after a third-quarter sales drop, the newswire said. Alphavalue analyst Adrien Brasey deems the target ambitious, noting that it will "strongly depend on Forvia's ability to increase its exposure to Chinese carmakers."
In late September, Forvia slashed its annual sales and profit forecasts for the second time in three months, reflecting weakness in the European and North American markets and delays in China, Reuters noted.