Forvia Strategic R&D Cost Reduction
Forvia , resulting from the merger of Faurecia and Germany’s Hella, strategically aims to cut its Research and Development (R&D) costs by 50% by 2028. This significant move is fueled by the integration of generative artificial intelligence (AI) to tackle challenges posed by electrification and increased competition from Asian counterparts.
With a vast global workforce of 157,000, including over 15,000 engineers in 76 R&D centers, Forvia’s pursuit of halving its R&D costs is a substantial undertaking. CEO Patrick Koller, addressing journalists, acknowledged the enormity of this initiative, emphasizing the need for extensive restructuring. He underscored the urgency of transformative measures, noting that failure to undertake them could lead to a precarious position in the industry within the next three to five years.
While specific details about potential job cuts were not disclosed by the CEO, the implication of this radical transformation on training and recruitment is evident. The shift towards a more AI-centric approach necessitates a workforce equipped with the requisite skills to navigate this technological evolution.
Automated Production Expansion
In addition to cost-cutting measures, Forvia plans to establish five fully automated plants within the next two years, a significant expansion from its existing automated facility in Spain.
By 2025, the company envisions these plants, coined as ‘Dark Plants,’ to operate without human intervention. The term ‘dark plant’ draws inspiration from ‘dark stores,’ urban warehouses sans sales staff, catering primarily to home deliveries.
This automated production model aims to uphold human presence for crucial management, supervision, and maintenance functions while streamlining the production process through automation.
Currently overseeing 291 industrial sites across 40 countries, Forvia ambitious transformation underscores its commitment to embracing technological advancements in the automotive sector and maintaining a leading position in the industry.
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