2010-07-02 14:26

PARIS: French car parts maker Faurecia plans to buy a stake in one of the main suppliers to State-owned Chinese automaker FAW Group to build its position in the world's biggest car market.

Faurecia will take the 18.75 percent holding in the capital of Xuyang Group through a reserved capital increase, it said in a statement on Wednesday.

The deal will broaden Faurecia's product range, with complete seats, interior systems, stereos and interior trim, the company said.

Faurecia is targeting annual sales of 1.7 billion euros ($2.1 billion) in China by 2014, helping sales generated in Asia more than double to 15 percent from 7 percent last year.

Xuyang Group is majority owned by the Municipality of Changchun, in Jilin province, Faurecia said.

The city of Changchun, with the presence of FAW, China's second-biggest carmaker, and its joint ventures with Volkswagen , Toyota and GM, produced some 1.5 million vehicles in 2009, with a target of 2 million from 2011 and 3 million in five years.