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ESCP Prof. Martin Kupp shed light on the digital transformation road map of this global automotive component manufacturer with MIT’s Joe Peppard.

Once upon a time, not so long ago actually, Faurecia only supplied automobile manufacturers with parts. Recently, it made a new deal making it the seventh largest automotive supplier globally, with an highly-advanced technology portfolio addressing all industry megatrends. This creates a company with some 150,000 employees and annual sales of about 23 billion euros - forecast by Faurecia to exceed their very ambitious growth targets: 30 billion in revenue by 2025 (from roughly 18 billion in 2018), representing a Compound annual growth rate of above 8% vs. 2020!

How did Faurecia get there?

In the case they published with The Case Centre, ESCP Business School professor Martin Kupp and the Massachusetts Institute of Technology’s Joe Peppard explain how this modern component manufacturer has evolved from a supplier of hardware to an electronics supplier, and is ultimately embarked on a journey to become a software supplier.
A key driver of Faurecia’s projected growth have been the so-called “New Value Spaces.” At roughly 7 billion euros, and therefore contributing about half of the expected growth, these have primarily been driven by opportunities provided by digital technologies, particularly those concerned with increased connectivity, intelligence capability, and the digitization of customer experiences.

Want to know more about case studies and the case method? Martin Kupp, who is also a Case Centre workshop tutor and Executive Committee member, shares his views.