FAURECIA ACCELERATES ITS STRATEGY TO BECOME A GLOBAL LEADER IN COCKPIT ELECTRONICS SYSTEMS THROUGH A PROJECT TO ACQUIRE 100% OF CLARION

Nanterre (France), October 26, 2018

Faurecia accelerates its strategy to become a global leader in cockpit electronics systems through a project to acquire 100% of Clarion

Faurecia today announced that it had reached binding agreements with Clarion and Hitachi, the controlling shareholder owning 63.8% of Clarion, for a tender offer to acquire 100% of the shares of Clarion.

Clarion is a major Japanese supplier of in-vehicle-infotainment (IVI) and full digital audio systems, HMI and advanced driver assistance systems, connectivity and cloud-based services. With its core competences in electronics and software integration, this acquisition would significantly reinforce Faurecia's offer for cockpit systems integration.

As part of this transaction, Faurecia and Hitachi Automotive Systems have also reached an agreement for a business alliance within which Clarion and Hitachi Automotive Systems would be able to combine their product offers to propose unique autonomous driving solutions to OEMs.

Patrick Koller, Faurecia Chief Executive Officer said: "This project is very exciting for Faurecia as it would position us as a leading player for cockpit systems integration, able to offer unique user experiences. In addition, our business alliance with Hitachi Automotive Systems would enable innovative solutions for full autonomous driving to OEMs. The combined product and technology offer of Faurecia and Clarion and our complementary geographic presence and customer portfolios would create significant value for all stakeholders."

Brice Koch, President and Chief Executive Officer of Hitachi Automotive Systems Ltd, added: "We are convinced that Clarion will successfully continue to build its business as part of Faurecia. We at Hitachi Automotive Systems are committed to grow our activities in autonomous driving, which is one of our core businesses. In that context we look forward also to our partnership with Faurecia."

For the fiscal year ending March 2018, Clarion, headquartered in Saitama (near Tokyo), Japan, achieved sales of 183 billion yen (€1.4 bn). It employs 7,500 people and has 7 manufacturing sites (of which 6 are in low cost countries) and a presence in 16 countries. The company has undertaken a major transformation of its product portfolio from its traditional audio/infotainment systems towards its rapidly growing advanced driver assistance and HMI systems, including driver monitoring and autonomous parking.