Forvia is forming a joint venture in China with the manufacturer Chery

Automotive supplier Forvia announced on Friday April 12 an agreement with Chinese car manufacturer Chery with a view to creating 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 Wuhu, eastern China, will aim to design, manufacture and supply all related cabin systems and modules, including seats, interiors and cockpit electronics, with a controlled carbon footprint French group. It will have an R&D center dedicated to industrial design and cockpit assembly capabilities, and two production sites in the coming months, according to Forvia’s 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 had already 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.

European manufacturing is imminent

Chery is one of the Chinese car manufacturers that sell cars in Europe, especially electric cars. It aims for 3 million vehicles produced in 2024, and more than 5 million in 2026. And not only in China. The Spanish government said 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.

By Reuters (Diana Mandiá, editing by Sophie Louet)

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