AUTOMOTIVE SUPPLIERS
Faurecia at centre of German bribery probe / Some 11 companies under investigation / Financial difficulties
German prosecutors in Frankfurt and Munich are investigating kickbacks allegedly paid by French automotive supplier Faurecia (Nanterre; www.faurecia.com) to executives at several auto manufacturers, including VW, Audi and BMW. Altogether, authorities are investigating 11 auto suppliers and three car manufacturers suspected of offering or taking bribes in exchange for supply contracts. Faurecia CEO Pierre Lévi is said to have admitted having knowledge of the payments.
The Munich prosecutor´s office has confirmed press reports that US supplier Lear (Southfield, Michigan / USA; www.lear.com) is also a target of the investigation. The company´s German subsidiary is suspected of having funnelled a six-digit US dollar sum to a former buyer for BMW, who is awaiting trial on bribery charges. Reports earlier this week suggested that German supplier Grammer (Amberg; www.grammer.de) may be under investigation – although this had not yet been confirmed as this article was prepared – along with several other medium-sized German and Austrian firms.
Many of the auto suppliers have been in financial difficulty of late. Lear is in the throes of a massive restructuring programme – see Plasteurope.com Web of 18.04.2006. At Grammer, a cost-cutting programme is aimed at trimming costs by EUR 40m up to 2010 (see Plasteurope.com Web of 02.03.2006). However, the Amberg company said in late July that preliminary figures indicate more than 20% growth in EBIT in the first half of 2006. Final figures for the period are to be published on 16 August.
Faurecia, apparently the prime target of the probe, has hinted that its financial outlook for full-year 2006 is negative. For the first half, the company reported a net loss of EUR 48.2m (compared with a profit of EUR 34.5m for the same period of 2005). The plastics segments suffered particularly badly. Seat sales declined 3.9% (at constant exchange rates), while sales of interior systems fell 1.7% against the 2005 period. Business with front modules saw an even greater setback of 7.3%.
e-Service:
Faurecia half-year report 2006 as PDF document (185 KB)
The Munich prosecutor´s office has confirmed press reports that US supplier Lear (Southfield, Michigan / USA; www.lear.com) is also a target of the investigation. The company´s German subsidiary is suspected of having funnelled a six-digit US dollar sum to a former buyer for BMW, who is awaiting trial on bribery charges. Reports earlier this week suggested that German supplier Grammer (Amberg; www.grammer.de) may be under investigation – although this had not yet been confirmed as this article was prepared – along with several other medium-sized German and Austrian firms.
Many of the auto suppliers have been in financial difficulty of late. Lear is in the throes of a massive restructuring programme – see Plasteurope.com Web of 18.04.2006. At Grammer, a cost-cutting programme is aimed at trimming costs by EUR 40m up to 2010 (see Plasteurope.com Web of 02.03.2006). However, the Amberg company said in late July that preliminary figures indicate more than 20% growth in EBIT in the first half of 2006. Final figures for the period are to be published on 16 August.
Faurecia, apparently the prime target of the probe, has hinted that its financial outlook for full-year 2006 is negative. For the first half, the company reported a net loss of EUR 48.2m (compared with a profit of EUR 34.5m for the same period of 2005). The plastics segments suffered particularly badly. Seat sales declined 3.9% (at constant exchange rates), while sales of interior systems fell 1.7% against the 2005 period. Business with front modules saw an even greater setback of 7.3%.
e-Service:
Faurecia half-year report 2006 as PDF document (185 KB)
02.08.2006 Plasteurope.com [205973]
Published on 02.08.2006
German version of this article...