Forvia announces the creation of a joint venture with the Chinese car manufacturer Chery – 04/12/2024 at 12:57

Car sales company Forvia announced on Friday an agreement with Chinese carmaker Chery to form a joint venture in the field of intelligent cockpits, a project that aims to generate sales of one billion euros by 2029.

The joint venture, which will be based in Hefei, eastern China, will aim to design, manufacture and supply all related cabin systems and modules, including seats, interiors and cockpit electronics, using materials and processes with low CO2 emissions, the French Group said in a press release.

“The automotive industry is currently facing a technological revolution and the demand for smart and sustainable cockpits is increasing. In order to stay ahead of this competitive market, we are happy to strengthen our partnership with Chery, a leading partner in the forefront of technology”, he said. Patrick Koller, general manager of Forvia.

The two groups signed a strategic cooperation framework agreement in September 2023 to strengthen their cooperation in the field of intelligent and sustainable cockpits.

Forvia, a supplier of parts for Stellantis, Volkswagen and Ford, and which is also sold in China, is facing a drop in demand and Chinese competition.

Chery, in turn, is one of the Chinese automakers that sells cars in Europe, especially electric cars.

The Spanish government and the main negotiator, EV Motors, also announced earlier this week that the Chinese group was close to reaching an agreement to start manufacturing cars in Spain, which would make it its first production site in Europe.

(Written by Diana Mandiá, edited by Sophie Louet)