Good morning, and welcome to our 2021 results meeting. We will start with some comments about why we believe that 2021 was a foundational year. Michel Favre will present the financial data. I will be back with the standalone guidance, and finally, I will give you a first hint about Forvia's strategic goals. Let us start with 2021 as a foundational year for Faurecia. I think two main events have been founding Faurecia. The first one is the successful spinoff from our historical shareholder, PSA/Stellantis. This had two main and significant changes. The first one is the free float, with an excess of 90%, and the inclusion of Faurecia in the CAC Next 20.
The other one is related to our strategic autonomy, which has significantly increased and which might have made possible the second very important item, which is the strategic and transformative acquisition of HELLA. With HELLA, we created the seventh biggest automotive supplier. We increased significantly our technology content, addressing all industry mega trends, and I will tell you a little bit more about this. Faurecia now owns a controlling stake exceeding 80%, and we forecast strong earnings and cash flow accretions and value creation for all our shareholders. All of that has conducted us to change the name FORVIA, which is perfectly on track to deliver the synergies we announced in August last year. Let me start this presentation with climate change and what it means to us.
We are. You know, we have convictions around that. We believe that climate change is the challenge for humanity, and we have to tackle it as quickly as possible. We are fully engaged in doing this. Let me start with scope one and two, where we intend to be CO2 equivalent neutral by 2025. We are working with major partnerships, KPMG and Schneider Electric, and also ENGIE. With them, we are doing the following. We are reducing our consumption, we are self-producing electricity, green electricity, and we are buying green electricity. We also decided last year to create a new division, which is called Sustainable Materials. In fact, for the interior design, we will have to think about new materials which might even be CO2 equivalent negative.
It means that we have, on one hand, to increase the cost of these formulations, combining virgin materials with recycled materials and biosourced materials, and compensating this increase of cost by a reduction of cost of our manufacturing processes. We are very much committed. We have already a product family which is proposed to our customers, and we want to grow quickly, and we, you know, have the intention to be at around 400 engineers in 2030. We also work on the design of our products and the architecture of the interior. We are working on, for example, Seat for the Planet.
It means that we are thinking about modules which are very easy to assemble, and if they are easy to assemble, they are also easy to disassemble, which will allow us to enter really in the circular economy. All of that, of course, with reduced CO2 footprints. We accelerated our zero emission hydrogen strategy. We started, you know, with Stellantis. We increased our portfolio now with Forvia. We are also supplying HKMC Hyundai. We are supplying also SAIC in China. I think that we have increased significantly the customer footprint, and I believe that we have the biggest one. We have achieved an order intake as we proposed it of over EUR 500 million in 2021.
This, including Symbio. We will soon, very soon have a new communication to make, which is good news because we have won another very significant contract in this field. Related to this order intake, which will allow us to be at EUR 500 million of sales in 2025, and our target and on track to achieve our target of 2030, which we confirm at EUR 3.5 billion. It's time now to invest in our footprint. We will start in 2023 on a new plant in Allenjoie in France with a capacity of 100,000 tanks per year.
We also will start, and we will have, you know, a groundbreaking ceremony in Lyon for Symbio, and state-of-the-art new plant. This is working. We also see, you know, that a significant number of major OEMs are getting interested. Not only interested, but launching RFQs, and we will have a significant project. When I say significant project, I'm thinking about lifetime sales which are above EUR 200 million. We have a few in front of us in 2022, which shows the dynamic and the progress hydrogen is making. By the way, we are very clear, and all the studies are converging from this point of view. It's more efficient from an economical point of view to invest in both infrastructures, BEV and hydrogen.
I also would like here to underline our solid order intake, which cumulated 2019, 2020, 2021, achieved EUR 75 billion. I think that this is important because it shows, you know, the relationship we have with our customers, on a global scale. This solid order intake of EUR 75 billion means, for 2025 sales above EUR 24.5 billion. Here again, this is, what we announced in, during the CMD in 2021, so we are confirming our growth. I will be back to the growth, to the combined growth with HELLA. We won 213 awards, during the past year. EUR 2.6 billion for Faurecia Clarion Electronics. We are above what we announced being our target for 2021.
This is mainly driven by the Chinese and Japanese OEMs, but also Stellantis and Renault. We also achieved EUR 6.5 billion in China in 2021, which is representing about 27% of our total order intake, and again, reflecting continued strong growth potential of the Chinese market and very effective and efficient intimacy with the Chinese OEMs. Now, Michel, let us go through our financials.
Thank you, Patrick. Good morning, ladies and gentlemen. To start, to comment 2021, I am first to speak of strong tailwinds. Why? Because we face unbelievable volatility on the volumes. On top of that, volumes were comparable to the 2021s. I remind you that we lost two months of production in 2020. Last but not least, normally, when we have low volumes, raw material prices are down. On the opposite, inflation on raw material and on other costs was very high, and is not finished for 2022. On top of that, we face a big difficulty as a startup of a new plant in Michigan. I will come back on that. All together, we posted sales at EUR 15.6 billion, up 8.8%, organic.
Strong outperformance, 650 basis point in H2 and 500 basis point in full year. Please notice that Europe, mainly North America, as well, volumes were damaged by the semiconductor crisis. If we exclude this geographical mix, we speak of 1,150 basis point in H2, 800 basis point outperformance for the full year, which is the reality, in fact, of our business. In this difficult, I will say, situation, we were able to post EUR 862 million of operating income, 5.5% of sales. Net cash flow, EUR 305 million. We have EUR 12 million coming from the HELLA acquisition, so comparable is EUR 317 million. An important thing is the leverage ratio of how we say, debts. We are down to 1.6.
You know that we have an important, I will say, target for this year, integrating HELLA as a cost of acquisition is to be below 2.5. This is clearly contributing. You have in this slide ten the evolution, I will say, semester after semester. What you can immediately see in H1 2020 it is a drop of, I will say, the volumes linked with the COVID. What we see immediately is the H2. H2 2021 is probably the lowest H2 that we are facing since now a lot of years. Very low. And clearly between July and October very high volatility. I will come back on that.
All together, with 73 million cars produced in this world, it is a comparable figure to 2020, knowing that a normal figure is more 85-89. We are still 20% below a normal year. You know that in this sector, normally, we have a quick recovery, so we can clearly anticipate that volumes will come back and will strongly come back. We have an, I will say, an upside of 20% volumes minimum in the next years. Raw material figures are speaking by themselves. Steel prices have doubled, and you know that we are consuming steel in frames for seating and in the depollution system. The chemicals, plastics, are up by 40%, 50%, 60% according to the type, and it's not finished because you see the oil prices.
We are a big consumer for Interiors. Big pressure for that. Now, of course, our basic duty is to pass through this cost to customers. What we have indicated and what we have achieved, more than 80% of the impact has been passed through. But 20% is still unfortunately in our P&L. For the shortage, I was speaking of volatility. You have in the range what was the forecast at the beginning of the month and what was the real figure. When you see September, 122 days anticipated by customers, at the end of the month, 338 days. You can divide by 20, sorry. You can see the number for the equivalent number of plants closed by customers.
What I can tell you is that we were losing EUR 250 million in sales between the first week of September and the last week. In October, it was EUR 200 million. Unbelievable figure. Nobody has a reminder of such an impact in the past. I can tell you that November, December, we are much more stable, and we see the same thing in January, February with much better volumes back to, I will say, the volumes of the year before. I don't want to say that the crisis is finished. What I can tell you is that we are speaking of improvement, and I will say regular improvement on the situation. We have a specific difficulty with the startup of the Highland Park plant. In fact, we are speaking of two plants.
One is making the frames, and the second one is making the assembly of composites. This plant started in Q2 2021. We have first to face a stop-and-go of the customer. Second, we face a big volatility of the people. A big, I will say, turnover, and it is very difficult to stabilize the ramp-up where you are losing a significant part of the people every week. We have to act on the wage first to try to. We have to act, of course, on different, I will say, actions. I will detail now.
One second big difficulty due to the restrictions linked with the COVID lasting until mid-October, we were unable to send people to help this plant, which is as well an unprecedented case because we have taskforce, we have teams able to help a plant. Our action, first, we have appointed an EVP North America to increase the autonomy of the regions and to act as early as possible. Second, since October, a lot of people, something like 30 people, experts, specialists are helping the plant for the ramp-up. We have, as I said, stabilized the workforce with some, I will say, adjustment on the cost with a big use of subcontractors to be sure that we have the people and we will not more create a disturbance with our customers.
Of course, we are ramping up the production according to the rhythm of our customers. We continue to stabilize, and of course, we will continue to make the right measures to, I will say, stabilize the plant. Unfortunately, extra cost means cost of wage. Extra cost means, I will say, subcontractors. Extra cost means, I will say, scraps. The last but not least, some customer penalties. We have an extra cost of EUR 100 million in the second half of 2021, and we are estimating that with all the measures we are taking as a stabilization, anyway, we will have something like EUR 30 million extra cost in H1.
This bridge is a classical, I will say, reconciliation between last year, 2020, sorry, and 2021. You can see that in H2 the adverse impact on the sales was estimated at EUR 657 million, with on the margin the lack of contribution EUR 136 million. With the stop-and-go of our customers, the fact that we have unfortunately some supply chain links linked with this volatility. We have EUR 40 million. These are figures mainly between August and October. Net part of the raw material inflation we were not able to pass through was EUR 43 million. As I mentioned the problem of this U.S. plant.
On the positive side, we continue to improve our cost base. EUR 135 million, we have some EUR 80 million which are more one-off. The same exercise for the full year is giving exactly the same. On the opposite, 2022, 2020 was a very low, I will say, year. We have the outperformance, so it is why we have this EUR 1.3 billion additional sales with a EUR 359 million volume mix. Please notice the raw material full year impact EUR 70 million. We are at risk to have the same kind of figure as this year 2022. It is a major, I will say, part of our daily management to pass through and to protect our margins.
The rest, EUR 298 million of cost optimization, which will help, of course, the profitability of 2021, but as well, 2022. If I zoom by activity now, slide 16, Seating sales, stronger performance accelerating now. Of course, you have to add the geographical mix, so we are speaking of in H2 of another performance above 1,000 basis points. Operating margin was impacted, of course, by the inflation, but the main impact is definitely the Michigan plant, yeah. It is why you can see 4.7% full year margin, but above 6%, excluding, of course, this, I hope, one-off impact.
Interiors, slower, I will say outperformance, but anyway, with the geographical mix, we speak of 720, a little more I think because Interiors is more Europe and North America, so anyway, a stronger performance. Margin was impacted by the stop-and-go and by the pass-through. As you know, Interiors is more consuming plastics, and our capacity to pass on plastics is lower than on steel. Anyway, I will say we will recover some, I will say, much better profitability in 2022. Clean Mobility, stronger performance, and please notice a stronger performance in Europe, helped by some gain of market share and the fact that we have a huge position on hybrid cars. Margin at 10.5%, please take into account that this BG is subsidizing the new hydrogen activity.
Ex-hydrogen, we are double-digit. I think with the low volumes we face, it's quite a performance. A very good year, I will say, for Clean Mobility. Clarion, now the momentum of sales has started, EUR 838 million of sales. We are targeting this year, 2022, EUR 1.2 billion of sales. Operating, we were able to protect the operating margin, whatever this unbelievable volatility and overcost on electronic components. This year, we are at zero. We are in fact slightly positive, if I exclude the IT cost to make the integration. This year, we are targeting a mid-single-digit profitability. It will be the year really of the breakthrough for Clarion. By regions, Europe, EUR 3.2 billion. You see what I was mentioning?
I forget to mention that if you compare the production volumes of our customers, H1, H2, it is a loss of 2 million cars from 8.9 million cars to 6.9 million cars. The European situation was very difficult in second half. It is why we posted this low margin of 2.7%, 4.2% for the full year, and I am confident that we will recover something like 6% this 2022 year. North America, on one side, like Europe, big outperformance, and mainly. On the other side, we have this difficulty in Michigan. It is why you have these two figures, 1.3% and 4%. Same thing with the ramp-up, the improvement already made in Highland Park. We can target 6% this year.
Asia strong performance on, I would say, every line, starting with the outperformance, helped by all the BGs, helped by Clarion. Clarion is a strong contributor. Second, double-digit margin recovered. It is including the growth of Clarion, which is slightly dilutive. Very good performance in Asia, and I will say in all the regions of Asia. The rest of the world, if you remember, is South Africa and Brazil and South America. Strong recovery, and we are here as a big contribution for Stellantis in Pernambuco, for the Jeep, where we have a very good position in Interiors. Very good margin. This margin was helped by a one-off EUR 13 million, I would say, risk provisions.
Anyway, we are speaking of a margin above the average of the group. Speaking of the different lines, we were able to protect the gross margin at 12%. It's not our target. Our target is 13%-14%. Anyway, all together to recover 12% respect to the low 10% of 2020. We were able to moderate the R&D expenses to reduce. I will say the SG&A. Unfortunately, I have to say that bonus reductions are playing on this side. Anyway. Thanks to that, we double the operating margin. Net income, a lot of one-offs, a lot of restructuring or less than in 2020, but anyway, close to EUR 200 million.
Some costs related to the acquisition. On one side, fees, on the other side, it is all the consultants that we have used to make this transaction. On the operating income tax, I have to be transparent. We were not activating how we say it, a tax in some countries where we are losing money. We are very cautious on that, so we have probably an upside for the next year on this line. Last but not least, you can see the line which is the sale of ST. Now we have a positive sale, but compared to the net-net, I will say value, unfortunately is a loss of EUR 96 million. ST is Europe, so we are selling at a bad moment.
On top of that, ST was mainly the classic cars, very poor presence on the SUVs. All together, recurrent net income EUR 130 million, and you know that volumes are playing very quickly on this pressure. Cash, difficult year. I think my peers have already published that on the inventories there was a big pressure. Why? Because in a time of volatility, mainly until October, very difficult to optimize inventories. So we have at the end of October, which is more or less the same as the end of December, EUR 200 million higher inventories than expected. So this has a weight, of course, on the working capital that we offset with some optimization, very low level of customer overdues, some small improvement on supplier terms.
Second point was the, sorry to say that, the low level of EBITDA. We were more targeting at the beginning of the year 2.4%-2.5%. We were optimizing the other lines. We have a strong big line of restructuring, EUR 175 million, that probably will be slightly below this year. If I can give you some information on 2022, CapEx will be more at EUR 600 million and capitalized R&D at EUR 700 million. We want to deleverage, so it was not the case last year. Now we have the dividends. We buy some shares to make our capital increase to employees, so it is a net impact for Faurecia.
We have some contribution to Symbio, to some small outflow that liquid CLAs. All together, we increase the debt by EUR 339 million. We will definitely reduce the debt in Faurecia alone, okay, with the CLA, in this year with some divestments. I remind you that we have minimum EUR 500 million target of divestment this year. We were very active on the financing market. We were issuing the first senior green note for a supplier. It was in the first quarter. We anticipated, if I can say that, the acquisition, and we have this bond in November 2021, and a Schuldschein in December 2021.
We have made an agreement with the banks, a EUR 5.5 billion facility to make the acquisition. We have just drawn in February EUR 2.9 billion, and we will refinance this EUR 2.9 billion. Now one will be with the bank loan, EUR 500 million. Second will be with the capital injection that we want, we would like to do this first half. The third with a bond issue to complete and close definitely the acquisition. You see the maturity of our debts, so we are managing if more than five years average. The cost of our debts is below 3%.
We have no major repayment before 2025, and we have strong liquidity, but please take this liquidity, the fact that we were anticipating the payment at the end of, we said, January. Last but not least, I would like to thank the work made by the rating agencies to go with us on this acquisition. We were, I would say, securing our current credit rating, and we want to restart the rating rally towards an investment grade. The target is 2025. To close this financial presentation, dividends. Now, of course, when you are with a leverage, it's not the right time to pay dividends, but anyway, we want to protect our share ownership, and we want to thank them for their support in this acquisition.
It is why we propose the same dividend as last year, EUR 1, which will be paid either in shares or in cash. It will be an option of our shareholders, and this is clearly translating the big, how we say, confidence in our cash generation and in all the project. We have repeated again, as I, we repeat the fact that we have fantastic synergies to achieve with ZF. Now, I give the floor back to Patrick.
Thank you, Michel. Maybe before I start with the guidance, I have two remarks. The first one is related to the sales we had in Europe. I think we need to underline this again. In the second half of 2021, the production volumes in Europe were at the same level, even slightly below, than during the first half of 2020, which is an incredible figure. This, of course, you know, had consequences and we were able to deal with these consequences. We announced an outperformance of 650 basis points while we were penalized by the geographical impact by about 500 basis points. The reality, you know, would have been 1,150 basis points.
When you look at the geographical impact on a yearly basis, it was at 300 basis points. This is significant. The second point I would like also to come back to is Highland Park. We spoke about two figures which I believe are important. EUR 100 million, which is the impact of Highland Park in the second half of last year. It includes EUR 10 million of accruals. We have negotiations ongoing with the customer. It includes also what I would believe in being normal, you know, for this level of plans in terms of start-up costs, which would be around EUR 20 million.
Now when we speak about the EUR 30 million we are considering in H1 of this year, first, I would like to tell you that the capacity is now robust and validated. We do not have any more issue with the volumes. We are converging with the costs as planned. The customer is running its volume at about 60% of the nominal capacity. We are in a stop-and-go process. We cannot flex it, and especially on the JIT business. We know in North America, in Michigan, that if we would flex, we would reduce our headcount, we will not be able to recover them when needed. This is why we have this issue.
Finally, in the second half, and I can't tell you more about this, and you will understand why, we are considering some restructuring which will significantly improve the situation again, and we should be able, you know, to finally achieve a year at break even. These are the two things I wanted to add to Michel's presentation. Now let us go to the guidance. We spoke about inflation, we spoke about semiconductors, we spoke about Omicron. Let me tell you what my concerns are. The first concern is inflation. I do believe that we will face a structural inflation on steel, on transportation, on energy, on wages, and we will have to deal with this. We will have to compensate that.
We spoke about, you know, last year, we were able to pass through more than 80% to our customers, but with a remaining amount of EUR 70 million. We have to think about being able, in 2021 and 2022, to compensate about EUR 150 million. Stop and go, Michel said it's improving. It's improving, but we are still not there. I don't believe that we will completely exit the semiconductor crisis before next year. We will see progressively improvements in volumes, and these improvements might accelerate in the second half of this year. Omicron in Asia, these are, you know, additional risks, but we need to face them, and especially Omicron in China. So far so good, yeah. The Chinese authorities are able or were able to deal with the situation.
More than three billion vaccines were used, including the third shot in China so far. The last one are the tensions we have in Europe between Russia and Ukraine, which could have an impact on the energy prices. Considering all of this, we have decided to go ahead with an assumption of 78.7 million light vehicles in 2022. This means a growth of about 7% versus the past year. We were conservative in H1, prudent at least in H1, with a decrease of 2% versus H1 2021. We have to remind ourselves that H1 was high and H2 was low. Of course, this is impacting the different percentages.
We also believe that we will recover after 2023 the volumes we had, the peak volumes we had in 2017. Really in all the regions, the inventories are extremely low and sometimes historically low. The demand, maybe I finish with this part, the demand is also very strong. We see it everywhere, and we start also to have now a shortage of secondhand cars. I think that as soon as the semiconductor crisis will improve, the volumes will increase. Considering all of that, this is the guidance we are proposing. Sales between EUR 17.5 billion and EUR 18 billion.
An operating margin between 6% and 7% with a second half close to the pre-COVID levels, and a net cash flow of circa EUR 500 million. This before the HELLA acquisition impact. This, again, is calculated on the basis of the 78.7 million vehicles. This is the guidance for Faurecia standalone. We will publish with, you know, simultaneously with our Q1 sales figures, the combined group guidance, which will happen in April 28th. Now, if we go through the strategic update of our acquisition. The closing has been achieved January 31st, I think, in a pretty small timeframe, 5 months between the go and the closure. At that time, the stake we own within HELLA is above 80%, and for a total value of EUR 5.4 billion.
HELLA is now fully consolidated into Faurecia's account, and this starting from February 1st. The family pool owns 9%, and you see here that our free float is at 76%. You know, the structural part is at around 24% with Peugeot 1810 3.1%, Bpifrance 2.2%, Exor 5.1%, and Dongfeng 2%. Also, to be noticed, our employees own 2% of the company, and this after the ESOP we achieved last year. The creation of the seventh biggest supplier globally. You know, we haven't lost time. We have worked on an organization with six business groups. For the moment, we have in the electronics two separated organization which are working closely together, Clarion Electronics and HELLA Electronics.
You see lighting and Lifecycle Solutions are part of HELLA, and you have Seating, Interiors and Clean Mobility being fully part of Faurecia. Three of them are based in Nanterre, and three are based in Lippstadt. We also have worked on the global support functions. They are deployed at group, at business group, product and business divisions, and also at plant levels. We are considering each plant with a P&L, and we are consolidating the different layers that way. To these six business groups correspond 24 differentiating product lines, which are addressing all industry megatrends. I might only detail two of them, electronics with sensors and actuators, automated driving, lighting and body electronics, energy management, cockpit electronics, and HMI and displays.
The two last one, cockpit electronics, HMI and displays, are the ones coming from Clarion Electronics and getting added to the global setup. The other one is Lifecycle Solutions with the independent aftermarket, but also with workshop solutions, including diagnostics, tools and special original equipment. We spoke about the synergies, and we are at a level where we can announce and figure which is above the one we estimated in August last year with an excess of EUR 250 million. This with an implementation 40% in 2023 P&L impact and 80% in 2024 to reach 100% in 2025. On the other side, revenue synergies with a figure between EUR 300 million and EUR 400 million, but this is an increase by 2025.
It's clear, but it takes a little bit more time. That even in 2026, we have more than EUR 100 million to be added to this figure. What is important also to mention is the growth we will have to face here. We will do this year between EUR 24 billion and EUR 25 billion, and we will grow in 2025 up to EUR 33 billion. It means that we do not need growth. We can be selective, and we have to be selective, and we have to favor much more the margin and the profitability to achieve, you know, not only our targets, but to secure this growth. The challenge, the main challenge will be to attract the talents. This is it, you know, between 24 and 25 billion to up to 33 billion sales.
EBIT margin above 8% for Faurecia standalone, above 8.5% for Forvia, and net cash flow of EUR 1.1 billion for Faurecia standalone. Above 5% of sales at a level of EUR 1.75 billion for Forvia in 2025. A net debt to EBITDA ratio of 1x. I would like to tell you that we have changed our parameters for our bonus, our incentives, and we are now fully focused on the deleveraging of the company. The main indicator parameter of our bonuses is related to the net debt to EBITDA ratio. This is the beginning of the story, and this is, you know, what will found our CMD, our next CMD, which we forecast to have in September.
We will very soon announce the date for you to plan your participation. The first thing, you know, I spoke about the challenge which is related to attracting talents and to staff and our growth. We work on challenges that matter with people who matter to us. We have four pillars. The first one is safe. We relentlessly enhance mobility safety inside and out. Sustainable. We frame everything through the lens of sustainability. Advanced. We design advanced and automated driving solutions to stay connected, productive and entertained while on the move. Customized. We offer solutions for customized aesthetic and emotional experience. Combining all of that, we are a global system enabler, combining hardware and software. I think that this sentence is very important, and it's the way we want to inspire mobility.
A video to introduce now our new name.
Today's world, it's all about change. Climate, technology, society, the way we live, the way we move. Change is accelerating. So are we. Faurecia and HELLA, two automotive leaders, have come together stronger. We are much more than a global leader. We inspire the future of mobility because mobility is freedom, and freedom changes everything. More than 150,000 talents worldwide will change the way millions of people drive. Our cutting-edge solutions for sustainable mobility will protect the planet as we move on it. Our strong values and convictions that guide us in everything we do will impact the world positively. We are united in one vision for better ways to move around via electrified mobility, sustainable materials and innovative zero-emission solutions. For a safer, connected and customized journey via immersive cockpits, digital and autonomous driving breakthroughs.
For the communities we serve and future generations via our strong awareness of mobility's impact on mankind. Because we work on challenges that matter. FORVIA. Inspiring mobility.
To close this presentation, the main takeaways. The first one is clearly 2021, which will be remembered as a special year for us, for Faurecia and for FORVIA, with two major events, the spin-off first, but also the strategic and transformative acquisition of HELLA. Secondly, a difficult year where we were able to demonstrate again our resilience and our performance. The second half, and especially Q3, was a very difficult period of time. The creation in 2022 of FORVIA, the seventh global automotive technology supplier, which is empowering Faurecia's and HELLA's strengths. I think that we are committed and fully focused on delivering synergies. You've seen that our ambition is not at the end of the figure we showed.
We are creating value, and we will continue to create value for all our stakeholders. Last comment, the growth. Growing from EUR 24.5 billion-EUR 25 billion in 2022 to EUR 33 billion in 2025 will generate new opportunities. If we are capable to contain our fixed costs, we will very much benefit and increase our competitiveness through this growth period of time. Thank you. I think now we will open our Q&A session.
Thank you, sir. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to ask a question. We will now take our first question from Thomas Besson from Kepler. Please go ahead.
Thank you very much. It's Thomas Besson, Kepler. I have three questions, please. First, I'd like to ask about the guidance, not only on the cash side, and try to understand how conservative it is and whether you'd be able to give us an idea of the seasonality of these results. I would imagine that some, to some extent, H1 should probably be closer to 2021 and H2, you suggest closer to pre-COVID. The second question would be on the relationship with automakers in general and in Stellantis in particular. You talk about an impressive adaptability to transfer rising input costs. Is that going to be the same in 2022? Do you think you can pass more or less?
Because we get very different messages from automakers and suppliers on this, and it looks like the situation is more tense than it has been in the past between the two groups of automakers and suppliers. In particular, Stellantis seems to force new contracts that are less favorable to you. The last question, really formal. Can you confirm what you're going to report for the new group? Are you going to report as Faurecia revenues by division and by geography and earnings by division by geography or is it going to be less complete than before? Thank you.
I will take the two last ones, and I will let you, Michel, take the first one. We intend to report, as we are doing it today for Faurecia per business groups and per geographies. The relationship with customers, you know, I told you that, we passed through the inflation above 80%, and I don't see any reason why we would not be able to achieve the same level of performance in 2022. We have contractual pass-through mechanisms. It's a little bit more difficult for plastics, for example. But on plastics we are at about 75% of pass-through performances. Is the situation more difficult than before? We have one difficulty, which is related to a stop-and-go.
I said it's very difficult in the moment to flex the costs because we are afraid that considering the tensions on the labor market, it will be difficult to quickly, you know, to timely be able to rebuild our headcounts with you know the time also we need for the training. Here it's a little bit more tense. It's true, but it's not structural. We will exit this period of time certainly quickly. You spoke about some new requests proposed by some of our customers. You know, it's not the first time that we are facing this kind of situation. We have, you know, syndicates, we have associations, we have many ways to act collectively.
I mean, the supplier base to negotiate or at least, you know, deal with this kind of request. I'm absolutely sure that this will happen in the case you mentioned. What is also important to notice is that seeing light at the end of the tunnel, our customers will need volumes. We are entering in a different perspective. And they will need our support to, you know, accompany them in this new growth situation. Of course, you know, we are in the same boat. It's also in our interest to achieve this growth. It's changing a little bit, the perspective. To answer your question, I'm not concerned about our capability to manage this new situation with our customers.
You are perfectly right. We are targeting a strong improvement between H1 and H2 for three reasons. First is the volumes. In our guidance, we have 37 million car production in H1, 31 in H2. You know that volumes are very accretive in this business. Second, the progressive pass-through on inflation. The third, unfortunately, Highland Park, EUR 30 million will have a weight, something like 40 basis points on the first half. I fully agree with you. A margin in H1 comparable to the margin of 2021 and a margin definitely above 7% in H2.
On the cash side, the conservative guidance?
Conservative guidance, you know, like me, that we are at the beginning of the year. I don't speak about Ukraine yet, et cetera, of course. To be honest, we think that we will have a strong upside on volumes at least in H1. It is what we see today. On this side, you can say that it is conservative.
Great. Thank you very much to both of you.
Thank you.
Thank you.
We will now take our next question from Giulio Pescatore from Exane BNP Paribas. Please go ahead.
Hi. Thanks for taking my question. I want to go back on the free cash flow point just to start with. I mean, I noticed that you're factoring increase in H2 2021, so I wanted to make sure how much factoring are you assuming for 2022? Are you assuming a neutral impact or another positive effect? Then still on 2022, what are you assuming for working capital? Are you expecting some of the reversals for the EUR 200 million negative effect you saw on inventories in 2021? Is any of that included in the guidance? Then, can you just confirm that you're still assuming a leverage below 2x for FORVIA in 2022, by the end of the year? Second question on seating.
I noticed that the one-off cost was slightly higher than you had anticipated. I think it was EUR 80 million and that increased to EUR 100 million for last year, and then EUR 20 million that increased to EUR 30 million in H1. I mean, can you give us any confidence that further increases will not materialize in the coming months? Thank you.
I will start with the second one with seating. The first point, you know, when you speak about the increase between EUR 80 million and EUR 100 million, I said it just before, we have added some accruals inside this amount because we have negotiations ongoing. On the EUR 30 million, it's mainly related to the stop and goes we currently have. You know, I said it, we are running the plant at 60% of its capacity, but with a headcount which is corresponding to even a little bit more than 100% because we are facing in North America, and this has nothing to do with us, an absenteeism which is around 15% per week. Yeah.
It's a very difficult environment, which has a cost. This is why we are considering more structural measures, which might be implemented in the second half. I do not expect an increase of this amount.
John and Giulio, factoring, we have an increase of factoring. A part of this increase of factoring is forex, because unfortunately, we are taking as a forex of end of the year, which was much above, the forex of end of 2020. We are in our target to cap this factoring, so to have a small reduction or the worst case as the same figure. Inventories, EUR 200 million, we have factored that we will be able to reduce a part of it because unfortunately we think that for safety reason, semiconductors will have a weight, and this will finance the growth. It is why my guidance will be zero working capital evolution.
The leverage is 2.5, less than 2.5, less than 2 is 2023, et cetera, et cetera. To go to 1, second one in 2025. Here, the mechanisms are cash flow, divestments. We want to achieve minimum EUR 1 billion of divestments by the end of next year. Of course, the main driver is EBITDA. We are speaking of a new group where I can tell you today our expectation is much above EUR 3 billion, and we will go to an EBITDA which should be close to EUR 5 billion. I repeat, EUR 5 billion in 2025.
Okay. Thank you. The leverage for this year of below 2.5, that includes the EUR 500 million of divestments that you expect for this year?
This includes what? Sorry. The EUR 500?
The 2.5 Multiplied-
The EUR 500 million of divestments
EUR 1 billion of divestments.
Yeah, of course. No. My guidance for the month is EUR 500 million for this year in 2022.
Yeah. I was wondering if that is included in the?
EUR 1 billion is by the end of the next year. Of course, if we can accelerate, we'd be very happy, yeah.
Okay. Yeah. Thank you.
We will now take our next question from Gabriel Adler from Citi. Please go ahead.
Hi. Thanks. I have two questions, please. The first is coming back to the cost inflation. I think the 80% pass-through you've spoken about relates specifically to raw mat inflation, but could you also quantify the impact you're expecting from other cost buckets such as wages, energy and logistics? Are you expecting price recovery from OEMs this year to help compensate for these? If so, when do you expect them to take effect? My second question is on the outperformance assumed in the guidance. Because when I look at the guidance, I think it implies up to around 400-500 basis points of outperformance at the top end against that 7% volume assumption you set out.
Given that geographic mix alone should contribute about 300 basis points this year, the guidance looks a little bit cautious to me compared to the outperformance you've achieved in 2021. Maybe you could just confirm what level of outperformance you're assuming, excluding geographic mix this year in the guidance. Thank you.
Again, when we speak about the pass-through mechanism above 80%, it is related to all raw materials. It is not taking into account the wages, and it's not taking into account the logistics. That said, we have also, of course, discussions about that, again because they are related to and the stop and go. You know, the problem we have, I said it, is that if we reduce our headcount, if we flex our costs, we might be in difficulties to recover and to restore our headcount and get ready on time to deliver the growth. This is something we will have to discuss, you know, one by one with our customers on how we will manage this situation.
It is also very clear that we have through cost reductions, through cost optimization, we will have to compensate this inflation. Because again, I do believe that a significant part of it is structural, and we cannot accept, you know, to get penalized on our valuable margin, especially with these non-compensated or non-pass-through amounts. We have plans for that.
On the outperformance, I think you are very right. In our budget initially, we were targeting better volumes in Europe, so we have been surprised by the big drop everywhere in volumes in Europe. Theoretically, if I take my budget, I should have an upside with Europe. It's the same question as Thomas. I expect to say that normally we have an upside on volumes slash geographical mix.
Maybe a last comment about inflation. You've seen and you will notice that our customers have increased their prices and sometimes significantly in order to get compensations about these inflations. It's difficult to resist on our requests to get these compensation as you know we do not have the ability to increase our prices as easily. I think that this will not be the main issue. I'm thinking again, the main issue will be the stop and go until we get a real release on the semiconductor volumes.
Okay. Thank you very much.
Thank you.
We will now take our next question from Martino De Ambroggi from Equita. Please go ahead.
Thank you. Good morning, everybody.
Morning.
The first question is on the operating leverage for the current year, if it's possible to split the group, first of all, and if you can split by division. In particular, I'm wondering on the Clean Mobility, which had a very high operating leverage in 2021. The second question is probably a bit complicated, but you mentioned bonuses are correlated to net debt to EBITDA. Just to double-check, is it the only metric? Is there any reference to the free cash flow in absolute terms? Is it adjusted in case of rights issue, in case of buyback of minorities? Last, any update on the rights issue timing? Thank you.
For the last one, maybe. The decision is not fully validated yet. We have ongoing discussions with the board of directors of Faurecia, but we have a consensus that the deleveraging of the group is a critical objective for all of us. What is interesting with net debt to EBITDA is that it's catching everything. It's catching EBITDA. It's catching, you know, our profitability. It's catching, you know, our net cash generation. But it's also catching the divestments when we might do and, you know, the other items you mentioned. We have announced a target, which is 2.5 x at the end of the year, and this is an absolute must-achieve for all the teams inside Faurecia.
The leverage, you can say that you are a little disappointed because when you make the calculation, you will arrive at a 15% leverage, with respect to the additional sales. This is due to the inflation. Unfortunately, we already discussed that, inflation has a weight between 50-70 basis points negative. The additional volumes with respect to our guidance, and you have seen the figure, 87.78, so say 78 million cars, will be at least 20%. It is our goal. No discussion on that. By BG, you're right. Clean Mobility has the highest operating leverage, and today, Clarion has the lowest because of the weight of, I will say, R&D. The difference is something like 5%.
Components.
Hmm?
Components.
And?
Electronic components.
Electronic components. We have a difference here, but it's not that huge. Clearly, we will deliver 20% on the additional volumes. It is our goal.
Okay. Thank you.
Thank you.
We will now take our next question from José Asumendi from JP Morgan. Please go ahead.
Thank you very much. José Asumendi, JP Morgan. Good morning.
Morning.
I've got questions. Good morning. Can you hear me?
We can't hear you.
Hopefully you can hear me.
Try again.
Can you hear me now?
Yeah. No.
Okay. Just a couple of questions, please. The first one on Clean Mobility.
I think we are losing you, José.
On Clean Mobility, the question is basically are we still looking? No. I think the line is a little bit scratchy. I'll try to formulate the question directly. The Clean Mobility division, are you still looking for a product mix improvement that driving the profitability of Clean Mobility over the next two to three years as you move the business more towards heavy duty applications? Second, Patrick, can you speak about the electronics division and remind us of the revenue split within the electronics division? Effectively, which drivers do you think you can apply to improve the profitability of electronics? Finally, raw materials. I didn't catch the number, please, for raw material headwind.
If you could just repeat that again, and how do you plan to pass on the incremental cost to your customers? Thank you.
Clean Mobility. Maybe, you know, we told you that we achieved EUR 24 billion of order intake the past year. This is also because we are not accounting for the longevity products. What is very interesting for our business on Clean Mobility is that the customers have stopped designing new engines, new thermal engines, ICEs, but they have also decided to extend the life of these small number of engines much more than previously planned. This is for us excellent because it means that we will have low CapEx and low R&D costs to supply these longevity projects.
On the other hand, Euro 7 was delayed several times, and now we expect Euro 7 to be communicated in July of this year. What we know is that it will request additional regulation loops in order to depollute and to reduce the CO2. To depollute further these engines, you will need an electric heated catalyst. We believe that they will need about EUR 80 in addition versus our current average on passenger vehicles. On one hand, we have longevity projects with low CapEx and low R&D costs. We will have additional regulation loops which will compensate the decline in volumes, and so we believe that we will be able to maintain our profitability, including in absolute figures for quite a longer period of time.
We also see popping up more and more questions about will it be possible to achieve a 100% electric mobility in 2035? More and more voices are questioning this possibility for two reasons mainly. The cost convergence on these vehicles, which appears to be much more difficult than initially forecasted. The second very important point is infrastructure. You know, at European level, the plan for 2030 was to have about 47-48 million electric vehicles on the road, battery electric vehicles and plug-in hybrids. In order to achieve the right infrastructure, we should currently implement 14,000 charging stations per week. The current figure is 2,000 charging stations per week. So you see that we are pretty far. We also have some difficulties about the peak usage of this infrastructure.
That, you know, maybe things will have to be refilled in the next future. We are, in a nutshell, absolutely confident about our capacity to maintain the profitability, which by the way, is also financing our hydrogen growing activity. I'm not sure I've understood your question about the electronic division. What will help us, what will support us in terms of profitability. The first thing is the portfolio management. HELLA has developed tools to question on a yearly base its full product portfolio in the electronic field, which shown to be very effective. You understood we want to be an enabler of systems.
We are not saying that we want to be a system supplier, so we will not enter into the large software-based systems of the vehicles, especially related to automated driving. We want, as an example, to be a supplier of electric steering, for example, with all the software related to it, and they are very sophisticated considering the safety guarantees you need to provide. We will have a significant advantage on the purchasing side. It's very interesting, you know, to understand that we have two centers of gravity. We have a Western center of gravity with HELLA, and we have an Asian center of gravity with Faurecia. The combination of both is opening significant synergy potentials. We have the footprint.
You know, when we speak about electronics, it's you know, the majority of the activity is not dedicated. We have here real possibilities to optimize our global footprint. Finally, I think it's very important, we are benefiting from the standards in terms of software development, but also on electronic development on cybersecurity, which were developed by HELLA. The combination is giving us, to make it simple, a critical mass, which is allowing us to improve our profitability. While I have to say that the profitability of the electronics of HELLA is benchmark.
Raw material mechanisms. We speak of steel, plastics, and more and more now of semiconductors, because we need some indexation. It works with controlled contracts, formal contract or with index. We have regularly some update and potentially some negotiation with customers. On steel, it is where it is most contractualized as every metal. It is why we can pass through more than 80%, even the total. Plastics, we have different type of plastics. If it is a polypropylene, it's easier. If it is other chemical parts, more difficult. Globally, with the application of the index of the contract to close, we are above 60%. For semiconductors, for the moment, is a one-to-one with the negotiation, will be more formal, I think it's a new contract. As an impact, I mentioned EUR 70 million loss.
That means that we have passed through more than EUR 400 million into, to our customers. We have, so this 70 is more or less 40 basis points. On top of that, when you increase your sale by 400 and your cost by 400, there is a dilution of margin. We have an additional 20 mechanical dilution of margin. All together, as inflation, both 60-70 basis points impact on 2021, and we expect a similar figure for 2022.
The next question, please.
We will now take our next question from Tom Narayan from RBC. Please go ahead.
Yes. Tom Narayan, RBC. Thanks for taking the questions. First on the CapEx guide, EUR 600 million, that looks like it's a slight uplift from the 2021 level. Is that because of HELLA or is that just catch up on some underinvestment before? Next, one of your French supplier peers recently gave out a great metric on their assumption for how much business they expect will be outsourced going forward, as opposed to being OEM insourced. I think the number was like 40%. Is this something you guys might be able to share with us for your business or any segments at this time? Lastly, CES 2022, we heard some very compelling arguments for why autonomous tech and level four specifically is already here, but that there's some regulatory obstacles.
Most of the math suggests that this will mean a dramatic decline in the amount of cars on the road and sold each year globally. I know this is very far away, but it does beg the question of what happens at a supplier level to auto production volume, especially Seating, Interiors. You know, VW bought a car rental business. They're putting a lot of capital behind its own software ambitions. Renault last week just announced the CFO is gonna head the mobility venture. How will Faurecia future-proof its own business when this happens? Thank you.
I answer to CapEx first?
Yes, please.
CapEx, we are starting a new period of very high growth. Patrick mentioned for the new group, but if I take Faurecia alone, we know that with our awards, we'll be above EUR 20 billion of sales in 2024, 2025. We are in a situation where on one side we have to catch up some CapEx, we have to prepare the growth, and third, we have in some countries to accelerate automation. It is why my dear colleague in operations is demanding more CapEx, which is normal. We have to increase this CapEx. It is for this year alone, of course, we will give a guidance for LR on top of that to have the full picture on CapEx.
I might combine both questions into one. The first part is related to volumes. When you look at the demand in Asia, we will still have a growth in the global volumes. Will this growth be above 95 million vehicles? I don't know. I do believe that we will achieve at least figures between 93 and 95 million vehicles. It's giving us, you know, quite some growth perspective. The second point which we see having been accelerated by the crisis we went through during the last two years, we have more customers than prior to the crisis.
When you look at the number of newcomers or new OEMs which will share this cake, it is increasing. We had a look on the evolution between 2006 and 2021. In 2006, the Chinese OEMs represented 1% of this automotive production cake. They represent today 13%, and it's not the end. At the reverse way, when you looked at the percentage, the Americans represented, it melted very significantly during this period of time. You also have newcomers. There are Tesla, NIO, BYD, you know.
You have a bench of newcomers, which have a very clear center of gravity, which is not so much the fact that they are electric vehicles, but it's much more the electronic architecture and what they are offering in terms of functionalities and upgrades. Yeah. I think the move is ongoing and this is rather good for us. You know, to have more customers is reducing our risks. Now you spoke about what is the part which will be integrated by the OEMs. What is very much changing is the amount of electronics and software they will have to consider in terms of integration. It's somewhere corresponding to the full value of the vehicle between 25%-30%. We cannot ignore this huge percentage.
They will have to integrate themselves in the management of the main systems of the vehicles. We decided not to go in this direction. This is why I insisted on our positioning, which is to be a system enabler and not directly the system supplier, because this would mean huge amounts of software engineers. We do not believe that this is our métier or that this is corresponding to what we are good at. We don't think that we will have an issue with vertical integration in our electronic and software portfolio. Now, when you look at our traditional métiers, if our OEMs have to consider this new integration, they will not be able to keep their fixed costs considering all the different métiers we currently interface.
I think that we will see in our traditional métiers some externalization rather than internalization. You know, what's the point to keep teams which are capable to develop the interior of a vehicle? We see it through, you know, the discussions we have with our customers. But as long as, of course, you are able to provide the innovation which is requested, and especially, you know, with the CO2 problematic we discussed. I also believe, you know, it's a third element which I think is important, the dealership. People will buy their vehicles also through internet and more and more. Electric vehicle will have a need for maintenance which will be significantly reduced versus thermal engines. So the value inside the dealership will melt, will collapse.
It means that we will see multi-brand independent dealerships increasing, popping up, with also, you know, multi-brand maintenance service offers, which will need diagnostic tools. Which will need a completely different interface, which will also need, I'm sure, software but also hardware upgrades for the vehicles. This is, you know, what will offer a new opportunity and B2C opportunity for Tier 1s like us. This is also why we have decided to go ahead with Lifecycle Solutions, and we will invest in Lifecycle Solutions in the near future. I hope I've answered your question.
Thank you very much. Appreciate it.
We will now take our next question from Edoardo Spina from HSBC. Please go ahead.
Good morning. Thank you for taking my three questions. The first one is on the restructuring. If you can be a bit more specific about the guidance for 2022, both for the P&L and also for the cash expenditures, if whether this is linked to the divestment that you mentioned. The second question is on the other lines, including the net income from associates on Symbio, if you can expand on what you think is gonna happen in the next couple of years in terms of cost. Finally, also in the minority line, which I think last year was larger than before. The last question is on the tax. I think Michel said, you know, that there's upside to that.
I think the last couple of years have been quite difficult to pin down, so if you can give us a guidance on that, again, if you can specify the P&L and the cash impact of the taxes. Thank you.
I'll take the Symbio part, and you, as well.
Yeah.
Symbio is, you know, it's a joint venture with Michelin. It's a 50/50 joint venture. With Michelin, we are perfectly aligned. We have to demonstrate our leadership objective in and our hydrogen systems. We acquired EUR 500 million in 2021, I said it. You can compare it with what was awarded to by the market. It's a very significant amount, yeah? We are entering now in the industrialization phase. We are building plants, which are state-of-the-art plants, but with industrial processes. I think that, you know, a couple of years ago, we were all on the starting line, and everybody could pretend winning the race.
Now, the race is ongoing, and I think that we will soon see which companies are the winners and which are not. I think that we are very, very well placed in this race. What is also very important is, you know, the first one achieving industrial volumes will have a big advantage from a cost point of view, yeah. It's also very important to be the front runner in this race. What I also believe is that, you know, the biggest volumes are on light commercial vehicles. The distance between the light commercial vehicles and the American SUVs and light trucks is short. I think that this is the next volume booster we will have to face. This is also something which will happen in China.
You will see that time is accelerating and volumes are accelerating, and I do believe that we are very, very well placed. Now, I said it before, it's a 50/50 joint venture. At the point of time, we might consider to partially spin off this activity in order to create value for the mother companies, but also to reinvest, of course, in Symbio.
Restructuring. We speak of for this year alone. Without the integration cost, et cetera. As a guidance, EUR 120 million P&L, slightly above, for the cash out. For the tax, the difficulties is that you have understood, Europe was very low water, so we were in a loss in Germany. A slight profit in France. Loss in the U.S., so it is why we didn't book any, we say activity, the losses going forward. This will improve drastically. I think that P&L wise will be between 25%-30% according to the mix and the time of recovery. Cash wise, same figure as this year.
Thank you very much.
We will now take our next question from Stephanie Vincent from JP Morgan. Please go ahead.
Thank you so much for taking my questions. Just a couple ones related to credit, if I may, and thanks for the disclosure about the net debt EBITDA targets. Just my first one is on the bank covenant. I think that the current syndicated line has a covenant of around 3 x. Is there any indication that you will loosen this covenant just to give you more headroom after the HELLA transaction? And then also on the mix of funding. Is there anything further other than your comments in the prepared remarks about your plans for mix of loans versus bonds, as well as any intention, I guess, to look at new markets or different currencies from in the past as we move into 2021?
Okay. Thank you for your question. Net debt to EBITDA, you're perfectly right. We have the covenant of 3 x, and of course, we will integrate end of June, the 12 months holding of HELLA. We will be below, of course, this figure. To date is our strong view. We are very comfortable to say that we repeat the commitment to be below 2.5 end of this year. For the financing, there is a right issue. We have indicated that we intend to go back to the market for the bond, for a bond. All of this in the first half. We can, according to opportunities, to go to the U.S. bond market for the first time.
I think the size of Faurecia, the presence in North America is justifying it.
That's very useful. Thank you very much.
Thank you.
We will now take our next question from Christoph Laskawi from Deutsche Bank. Please go ahead.
Morning, thank you for taking my questions as well. It's just on divestments. If you could provide a bit more detail, if it's possible at this stage. Are you already in discussions with interested parties, for parts of the business that you want to dispose? In terms of timing, could we see an announcement already in H1, or for this year, likely more end of Q3, early Q4? In terms of business that relates to HELLA, or which is currently still sitting in the legal entity of HELLA, are there any hurdles for you to negotiate a disposal there? I mean, obviously the company's management of HELLA needs to approve, but are there any other hurdles which we would need to be aware of? Thank you.
We are working inside this new configuration for a year also to identify what is not core business to us. You know, one thing is important, we need to manage the complexity as well as possible. Yes, we have identified areas where we will not be able to continue to develop, and we are not the best owner for some of the activities. Yes, we have launched some processes. About HELLA, it's exactly the same thing, by the way.
Do we have within HELLA an activity which would not be of strategic importance and which could, you know, if divested, give us new possibilities, new resources to invest in what we are considering being more strategic. This is something we are considering. We have no hurdles to do that. You know, of course, we have to go through the HELLA governance and shareholder committee, which is the body which is finally deciding. This, based on an analysis provided by the management board of HELLA, so it's a pretty normal and usual process. It has to, you know, let us be clear, but this is exactly the same thing for Faurecia. It has to provide finally value.
Thank you. I guess a comment on timing probably is too early for now.
You know, starting now or, you know, beginning of the year gives us a good probability to have, you know, results before the end of the year.
Yeah. Thank you.
Will it be cashed in? That's a different question, but finalized, yes. Closed, you know, it depends on other parameters and external processes.
Fair enough. Thank you.
We will now take our last question from Michael Foundoukidis from ODDO BHF. Please go ahead.
Yes. Hi. Two questions remaining on my side. One on the city issue that you have in the U.S. Could you make a first comment on what to expect beyond 2022? Is this a program that should remain dilutive versus other North American operations in 2023 and beyond or the lifetime of the program? Or you believe that you are able to improve it very fast after 2022? The first question. Second one is, you already touched on this topic, but related to relationships between suppliers and OEM. Would you say that they have deteriorated a bit in the past three years following the improvement that we had in the 2010 decade? And would you expect them to continue to deteriorate or to improve in the coming years? Thank you.
About Seating, you know, I said it, we are considering structural changes which will allow us to be positive on this project. By the way, the volumes will also help. You know, I'm sure that when we will be at 100% of the nominal value, a big part of the burden will simply disappear. Yeah? Yes, we will be positive with this business. You know, when you speak about the supplier-OEM relationship, what I would like to say first is that it is not one kind of relationship. We have very different supplier-customer relationships. It goes through real partnerships where we are creating value together to the ones which are more conflictual.
The first thing is it's not one process or one way to consider this relationship. Now what is very clear, and I said it before, our OEMs are understanding that the electrification is a cost and that this will penalize most probably their PNLs in the years to come. They also have to find compensations. They have to find ways to improve their profitability. Because we are representing a significant part of this, they are coming to us. At the same time, you know, the situation today with the Tier 1s has very much changed. They are also dependent on us, you know? The innovation is in a very large extent provided by us.
We have to find. You know, I spoke about the Seat for the Planet. I think that the Seat for the Planet is not only improving very significantly the perspectives in terms of functionalities and CO2. It's also disrupting the JIT business, which, if we would be successful with this innovation, have significant cost impacts. There are things to be done together, yeah? I think that we are far from having explored all the cooperation possibilities to reduce costs. I don't think, you know. You speak about these tensions. First of all, they do not exist with all our customers. Very important.
We have, you know, during this phase with some of our customers, significantly improved our interdependency and our relationship. Secondly, it's also up to us to understand what are the challenges of this industry and to provide solutions, and it's a win-win. We provide innovations which might, you know, reduce the costs, and we get, you know, as a reward, higher volumes, which are, you know, improving globally our situation. I'm not pessimistic from this point of view. Thank you. Very helpful.
Very well. I think there is no more question on phone, so we will go onto the web. So first question is about, from Mr. Parodi, is about the date of the dividend is not yet fixed by the board. I can say as a management, very probably, just after the shareholder meeting in June. There is a question from Mr. Chodorge, Infopro Digital. You registered a negative consolidated net income group share in 2021. Will it go back in positive territory in 2022? I remind you that excluding the divestment of SAS, et cetera, we were in positive. We have a recurrent net result positive. Of course, with the additional volumes, we'll be in positive territory. No doubt on that.
Thank you very much for your participation and for your listening. Thank you very much.
Thank you.
Goodbye.