French auto giant Forvia strikes €1.82 billion deal to exit interiors division

French automotive supplier Forvia has agreed to sell its Interiors division to US private equity group Apollo Global Management in a deal valued at €1.82 billion, as the company moves to reduce debt and sharpen its focus on higher-margin, technology-led businesses.

The division, which produces vehicle cabin systems including dashboards, door panels and interior components, generated €4.8 billion in revenue in 2025, representing around 18% of Forvia’s total sales, French news broadcast reports.

It operates 59 industrial sites and eight R&D centres across 19 countries and employs more than 31,000 people globally.

Forvia said the transaction values the business at 3.1 times its 2025 adjusted EBITDA of €582 million. Once completed, the deal is expected to cut the group’s net debt by at least €1 billion, with all net proceeds allocated to debt repayment.

The company has recently come under pressure from weaker sales, particularly in China. Its first-quarter revenue fell 6.4% year-on-year to €5.13 billion.

Chief executive Martin Fischer said the sale reflects the strength of the Interiors business while enabling Forvia to accelerate its strategic shift towards more technologically advanced activities.

The disposal forms part of Forvia’s “Ignite” strategy, unveiled in February 2026, which aims to reposition the group towards higher-value automotive technologies.

Apollo Global Management is betting on continued transformation in the automotive sector, where manufacturers are increasingly competing on in-car experience, premium materials and digital features.

Forvia’s remaining portfolio will be centred on automotive seating, one of its core businesses, alongside fast-growing electronics and cockpit systems strengthened by its acquisition of Hella, which specialises in intelligent lighting, sensors and displays.

The group also plans to expand in clean mobility solutions, including emissions control systems and hydrogen-related technologies, as well as software and embedded services.

In France, Forvia employs around 10,000 to 11,000 people across roughly 30 sites. The Interiors division alone accounts for several thousand of those jobs domestically.

By Aghakazim Guliyev