The Coronavirus pandemic is still ongoing, and the effects are all to be evaluated. But Faurecia reacts to CRV, or at least begins to organise its restart. The automotive supply group reviews credit lines to ensure the liquidity needed to face the crisis. And above all, while it is forced to close in the rest of the world, it reopens plants in China.
Faurecia reacts to CRV
In a statement dated March 27th, Faurecia acknowledges that it had to shut down many of its plants in Europe and the Americas. Why? Customers have done the same and, in some cases, national regulations require it. The multinational, which has set up a crisis unit to protect employees health, above all, does not stand still. Faurecia plans to resume activities, taking into account the possibility of it happening in territories where the virus has not been completely eradicated. In this sense, the experience in China is a test drive. In the People’s Republic “all the group’s plants are now active”, the group reports, at 70% of capacity.
To begin with, Faurecia excludes the financial targets declared on February 17th. The scenario has changed, and the group will present the new ones when the situation is better understood. Meanwhile, the multinational explains that it has “drastically” cut costs, development projects and investments. In order to secure the funds when solvency is essential, it has also put in place activities that now allow it to have credit lines for 900 million euros. The value can be increased in the event of an aggravation of the crisis.