From:Gasgoo.com

Shanghai, July 2 (Gasgoo.com) French auto-parts company Faurecia SA said this week that it has acquired a stake in a main supplier of Chinese automaker FAW Group to expand its presence in China, the world's biggest car market, media reported.

Faurecia has taken the 18.75% holding in the capital of Xuyang Group through a reserved capital increase, the French company said in a statement on Wednesday. The deal will broaden Faurecia's product range, with complete seats, interior systems, stereos and interior trim, for automakers in China.

Faurecia earlier said it expected to expand its involvement with FAW and its affiliates in several areas. The Changchun Faurecia Xuyang Automotive Seat joint venture, founded in 2001 and held 60% by Faurecia and 40% by Xuyang, currently specializing in seat frames, will expand to make complete seats.

Two new joint ventures will be created to make interior systems, building on Faurecia's existing Changchun plant and acoustic modules and floor carpets, building on existing Xuyang plants. Faurecia is targeting annual sales of 1.7 billion euros ($2.1 billion) in China by 2014.

Xuyang Group, majority owned by Changchun municipality in Jilin Province, is one of the main suppliers to FAW Group and the Chinese auto giant's joint ventures with global brands, including local units of Volkswagen AG and its Audi brand.

The city of Changchun is one of the main automobile production centers in China, hosting FAW and its JVs with VW, Toyota and GM, producing some 1.5 million vehicles in 2009, with a target of 2 million in 2011 and 3 million in 2015.