Manufacturers have begun to take the measure

Leading French supplier of automotive equipment, Faurecia considers that conditions in this sector continued to deteriorate. Builders were arrested to revise their forecasts downward, says Yann Delabrière, President and CEO of this subsidiary of PSA. But "the recovery will be very slow and gradual". His eyes, the most important is that the crisis is causing a concentration of OEMs, which "will lead to structural improvements in profitability".

What do you think of the eviction of Christian Streiff of PSA head, your main shareholder

At his request, I met Philippe Varin Monday afternoon. Already, I know that we will build relationships useful and confident, the same as those that we had established with Christian Streiff.

How is 2009 for the automotive industry

We continue to anticipate a difficult first half and a decline on the year of the order of 20 of the European automotive market and 30 of the U.S. market. For OEMs, the situation is particularly painful, because we are victims of the "double punishment": we are penalized by the fall of final demand and the movement of destocking by manufacturers. This clearance should be completed in the second quarter and so we should then reach a low point. We then move to the same level as the final application.

The market hit bottom

The degradation appears to stop. Since September, month after month, forecasts of manufacturers ceased to be revised downward. This was not the case in mid-March forecasts collected from our customers: for the first time, the last confirmed that of the previous month. And, in Europe, we are quite representative of the market.

The recovery is in sight

The recovery will be very slow and gradual. We now add the effects of a cyclical crisis comparable to those of 1973, in the early 1980s and 1993, at a more structural crisis linked to the commotion of the financial system. In the automotive, financial elements are very heavy. Almost 60 of the cars sold in the world, excluding China, are sold on credit. And this item there will not be resolved in the usual time frames of a cyclical crisis.

Will the crisis change the relationship between the suppliers and manufacturers

Indeed, I think it will change them. The crisis will necessarily lead to a concentration of automotive equipment industry, which has in fact already begun. Companies have been shut down in the United States, and there is a lot in a very difficult situation. It is also true in Europe. Manufacturers have begun to take the measure. They perceive the risk of the fragility of their supply base for the normal of their factories and especially for their future models. Builders see well that it is in their interest that emerges from this crisis a more compact and higher basis.

This happens through the acquisition of providers Manufacturers do not have the means...

Do not think that the manufacturers are to help OEMs. They must find their own solution to their problems. This is not by integrating the two trades that a lasting cure. It is therefore between OEMs that things will happen. However, this industry is in a financial position such that there was no money available. In addition, the financial players that have invested in the automotive equipment in the early 2000s to are themselves burned fingers. It is therefore not today of the financial means to consider acquisitions. This is not necessarily an impasse. In addition to certain winding-up, all this will pass through connections rather than through acquisitions in cash.

Do you already see interesting companies

Today, the priority is business management. This is not to disperse.

But companies like yours lose money, even when things are going well, and you are the crisis weakened. Can this equation change

Faurecia has addressed the crisis with its own operational problems. But the sector is not sentenced to insufficient returns. Looking before the crisis, companies such as Magna, Lear or Johnson Controls, not to mention Bosch, had suitable levels. Therefore, there is not inevitable. We were set in 2007 in a relief program and were on the right road. We are now at the same level of profitability as the big names that I have cited you, even if unfortunately they are the ones who have joined us. We are thus back in the race. More importantly, rationalization between equipment suppliers will lead to structural improvements in profitability.

You have announced in December more than 1,200 jobs in France, only in the domestic losses seats. Will there be a continued in other trades

Beyond the strong first-quarter 2009 air hole, should we prepare and put the company in State to live properly and generate the means of its development. Therefore, lowering the standstill of the Group of 15. This requires an adjustment of our costs and our workforce unfortunately.

In the second half of 2008, it has already anticipated what would happen. It was not only France, but everywhere. It continues on the basis of the plans announced late last year. In automotive seats, plan is largely voluntary departures. For the suite, can swear nothing, I don't know where customers can go. This is to determine what it has to do.

Your staff have already fallen...

At the end of December 2007, the group comprised 69.700 people in the world, including temporary workers. Figure that is passed to 61.400 in late December 2008.

Chrysler and GM represent large risks, especially when passing under the Bankruptcy Act

Chrysler, no, it was 2 of our turnover in the second half of 2008 and it down yet. It must of certain development costs. GM is a significant client (a little less than 8 of our sales), but we're positioned on cars that work well, such as the Chevrolet Malibu and Cadillac CTS. This is of course a daily concern, but I see not the production of GM to stop purely and simply.