Faurecia spurns supplier consolidation -magazine

FRANKFURT Nov 2 (Reuters) - French auto parts supplier Faurecia (EPED.PA) will not use an impending consolidation wave in the industry to spur growth through M&A deals, its chief executive told German business weekly WirtschaftsWoche.

"The current crisis will accelerate the process of concentration among suppliers. Only those that have the means to follow automakers into new markets around the globe while investing in research and development at the same time will be able to survive," Yann Delabriere said.

The 57-year-old Faurecia CEO does not see the need for his company to participate, however, since the company already has a leading position in seating, exhaust gas treatment systems, cockpits and other interior parts such as doors.

"Acquisitions are not our priority... an improvement in the financial situation is for us the first priority," Delabriere said. Faurecia, Europe's third-largest supplier after Germany's Bosch [ROBG.UL] and Continental (CONG.DE), is aiming to reach an operating profit margin of at least 3 percent by 2010 and full-year operating income in 2008 to be at least equivalent to that of last year.

The company is 71 percent owned by France's PSA Peugeot Citroen (PEUP.PA) but it generates nearly 40 percent of its revenue with BMW (BMWG.DE), Daimler's (DAIGn.DE) Mercedes-Benz and Volkswagen (VOWG.DE), its largest single customer.

(Reporting by Christiaan Hetzner; Editing by Jason Neely)