Finance
Forvia to sell part of car interiors business as part of debt-cutting push
Published by Global Banking and Finance Review
Posted on November 28, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 28, 2025
2 min readLast updated: January 20, 2026
Forvia plans to sell part of its car interiors unit to reduce debt, aiming to complete a 1-billion-euro divestment program.
By Mathias de Rozario
(Reuters) -Forvia is looking to sell part of its car interiors unit as part of an ongoing push to trim its portfolio and reduce debt, it said on Friday.
The car parts supplier has so far completed a quarter of the 1-billion-euro ($1.2 billion) divestment programme it announced in October 2023, with individual disposals ranging from 50 million to 200 million euros.
In Friday's statement, Forvia said it had launched processes to divest parts of its business, including unspecified assets of the interiors unit.
The unit, which supplies full instrument panel, door panel and centre console systems for cars, made up 1.09 billion euros in sales in the third quarter of 2025, accounting for nearly 18% of the group's revenue.
"It is a leading business, it is a fairly consolidated market ... they are among the top three in the world, they are credible, so I think it is a business that is not difficult to sell," analyst Julien Thomas from TP ICAP Midcap told Reuters.
He added the enterprise value for the whole unit could reach 3.5 billion euros, which could allow Forvia to solve its debt issue.
Since the merger of Faurecia and Hella in 2022 created the world's seventh-largest automotive supplier by revenue, Forvia has made divestments one of its priorities.
It aims to reduce its net debt to less than 1.5 times its core earnings next year through asset sales, compared with a ratio of 1.8 at the end of June 2025 and 3.1 three years before that, after the merger was finalized.
"Other activities that we believe could potentially be sold off could be catalytic converters." Thomas said.
The group, which had completed an earlier 1-billion-euro divestment plan in 2023, did not provide a timeline for the newly announced sale processes.
($1 = 0.8639 euros)
(Reporting by Mathias de Rozario in Gdansk and Gilles Guillaume in Paris; editing by Milla Nissi-Prussak)
Divestment refers to the process of selling off a portion of a company's assets or business units to reduce debt or focus on core operations.
Corporate debt is the amount of money that a company owes to creditors, which can include loans, bonds, and other financial obligations.
An instrument panel is the dashboard in a vehicle that displays various information to the driver, such as speed, fuel level, and engine status.
Enterprise value is a measure of a company's total value, often used as a more comprehensive alternative to market capitalization.
A merger is a business transaction where two companies combine to form a single entity, often to enhance operational efficiency and market reach.
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