It accounts for 18% of turnover (just over EUR 1 billion in the third quarter). But precisely because it is a well-established and reputable business unit, there is the opportunity to sell it well (for EUR 3.5 billion, according to analysts’ estimates). Forvia is sacrificing its Interiors division and is counting on doing so to resolve its debt exposure once and for all. However, a defined timeline for the sale has yet to be set.
Forvia sacrifices the Interiors division
Forvia is the automotive supply giant created in 2022 from the merger of Faurecia and Hella. Conceived as an industrial heavyweight, the Franco-German group has been engaged since October 2023 in a divestment plan that has already led to EUR 1 billion-worth of disposals. As reported by Reuters, to complete the turnaround plan Forvia now intends to sell the division that designs and manufactures the panels lining vehicle interiors (including steering wheels and control modules, but excluding seats, which fall under the Seatings division). For Forvia, this means relinquishing around a fifth of its revenue base, as mentioned. But it also means securing the liquidity needed to lift the burden of debt: according to TP ICAP Midcap analysts, Reuters writes, the division is worth EUR 3.5 billion.
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