French supplier Faurecia plans to build a factory in Shanghai to build seats for Tesla Inc.’s vehicle assembly plant.
The 25 million yuan ($3.7 million) factory will be built in Shanghai’s Linguang neighborhood, where the Tesla plant is located, the French supplier said this week, without divulging additional details.
Seating supply is the second business Faurecia has secured from Tesla in China. In 2019, it started supplying complete cockpit modules to Tesla’s Shanghai plant.
Faurecia began parts production in China in 1992. It runs 58 plants in the country that produce seats, interior trim and emissions control components.
Tesla launched output of its first product built in China, the Model 3 sedan, at the Shanghai plant in January.
The U.S. electric vehicle maker is expanding the factory to assemble the Model Y crossover.
Faurecia ranks No. 8 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $19.9 billion in 2019.