After the merger of Faurea Hella, the group was named FORVIA, and the seventh largest automotive supplier in the world was born

Just over five months after announcing an agreement with HELLA and its holding family, Faurecia completed the acquisition of HELLA's shares on January 31 this year, and announced on February 7 that the combined group would be named FORVIA, becoming the world's seventh largest auto parts supplier.

Image source: FORVIA Twitter

Faurecia and HELLA noted that the two sides retain their legal names and will continue to operate as two separate companies, and that products will also be sold under existing brands, while the two sides will work closely together to create sustainable value for all shareholders through technological solutions and synergies. The four pillars of the combined Group's vision for the future are safety, sustainability, advanced solutions and customized experiences.

After the merger, FORVIA will have more than 300 industrial bases and 77 R&D centers in more than 40 countries around the world, with a total of 150,000 employees, including more than 35,000 engineers, and will have 6 business groups (interiors, seats, electronics, lighting, green mobility and full life cycle value management) and 24 product lines. HELLA CEO Rolf Breidenbach will leave by June 30 but will continue as an advisor.

According to a press release, FORVIA has the complementary technology and industrial strengths of Faurecia and HELLA to provide unique and comprehensive solutions to the current and future challenges of the automotive industry, and is committed to becoming the preferred innovation and integration partner for OEMs worldwide. FORVIA wants to be a changemaker, able to anticipate and contribute to mobility change.

For the two advanced technology companies, the merger will accelerate their transformation, creating scale and leadership in electronics and Lifecycle Solutions. The combined Group will expand its business scope, strengthen customer relationships, accelerate growth in Asia, and provide better quality electronic and electrified products (BEV and FCEV).

Following the acquisition of HELLA's shares, FAURECIA became the controlling shareholder of HELLA, and HELLA's finances were incorporated into FAURE from 1 February 2022. Both companies have established clear governance models and appropriate legal frameworks to enable efficient cooperation. After the merger, the Hueck family became the largest shareholder in Faurecia, and at the next Faurecia shareholder meeting, the Hueck family will nominate Jürgen Behrend as a member of The Faurecia Board of Directors.

Thanks to an effective cost synergy and optimisation program, the new Group will generate an EBITDA operating margin of more than €250 million, higher than the previously announced EBITDA of €200 million; a profit and loss impact of 80% in 2024; a sales revenue synergy of between €300 million and €400 million by 2025, while cash flow optimization is expected to average €200 million per year from 2022 to 2025, and group sales are expected to exceed €33 billion and an operating margin of more than 8.5% in 2025.