Faurecia Sells Interior Business, MG Plans EV Plant in Spain, Multiple Automakers Hit by Rising Chip Costs

Automotive supplier Faurecia announced on April 27 that funds managed by Apollo Global Management have agreed to acquire its Interiors business segment for €1.82 billion. Upon completion of the transaction, Faurecia’s net debt is expected to decrease by at least €1 billion, marking a key step in its IGNITE strategy. The Interiors business is projected to generate approximately €4.8 billion in revenue in 2025, representing 18% of the group’s total revenue. It operates 59 production facilities and eight major R&D centers across 19 countries, employing over 31,000 people. The deal remains subject to employee consultations and regulatory approvals and is expected to close by the end of 2024. In Q1 2026, China’s automotive industry produced 7.15 million vehicles, down 6% year-over-year (YoY). Total revenue amounted to approximately RMB 2.4128 trillion, a slight decline of 0.2% YoY, while total costs rose 0.7% YoY to RMB 2.1406 trillion. Total profit stood at RMB 78.4 billion, down 18% YoY, with the sales profit margin falling to 3.2%. Revenue per vehicle reached RMB 337,000, up 5.4% YoY; cost per vehicle increased to RMB 299,000, up 6.3% YoY; and gross profit per vehicle dropped to RMB 11,000, down 13.2% YoY. Changan Qiyuan announced on April 30 that due to rising costs of automotive-grade chips, it would increase the manufacturer-suggested retail prices of three variants of its Q07 Tiānshū Intelligent Laser Edition by RMB 3,000 each, effective May 7. On April 28, BYD announced that starting May 1, the optional price for the “Tianshen Zhiyan B” advanced driver-assistance laser version on select models would rise from RMB 9,900 to RMB 12,000, citing increased storage hardware costs. On April 30, JAC Motors disclosed its intention to invest in Yinwang Intelligent Technology Co., Ltd., with specific terms yet to be finalized. Yinwang is currently 80% owned by Huawei, with Seres and Avatr each holding 10%. JAC and Huawei have collaborated since 2019 and signed an agreement on intelligent new energy vehicles in 2023. Their jointly developed Zunjie S800 model launched in May 2025 had delivered over 16,000 units as of end-March 2026. On April 26, both parties signed a Joint Innovation Cooperation Agreement to deepen co-development of technologies and joint brand building. According to informed sources, SAIC Motor’s MG brand plans to build an electric vehicle plant in Spain to mitigate EU tariff pressures. The final location has not been confirmed; if Spain is selected, Hungary—previously considered as an alternative site—would be ruled out. Locations such as Zaragoza in Spain offer mature automotive industrial infrastructure and logistical advantages. Neither SAIC nor MG has commented on the report. On April 27,佑驾创新 (Motional Innovation) and neueHCT announced plans to establish a joint venture focused on mobile robotics, aiming to build a comprehensive product portfolio covering scenarios from indoor environments to open roads. The partners will develop integrated ADAS+DMS solutions for L2/L2+ front-loading applications and accelerate the global deployment of their L4 autonomous logistics vehicle, the T5 Pro. The T5 Pro was unveiled at the 2026 Beijing Auto Show, highlighting its “true mapless” navigation capability and hour-level deployment speed.