French automotive supplier OPmobility is aiming to double its sales in the United States by 2028, a company presentation showed on Tuesday, as it benefits from auto sector consolidation and strong support for local production.
The company is the world’s leading producer of fuel tanks for both combustion engine and hybrid cars, and supplies the three leading U.S. automakers General Motors, Stellantis, formerly Fiat Chrysler, and Ford Motor Company.
It also supplies Tesla with parts, and a factory that it opened in Austin, Texas, this year will become its single biggest contributor to turnover by 2025, Chief Executive Laurent Favre told a press briefing.
It could open another two to three factories in the U.S. in the next five years, Favre added. Demand for tanks globally is set to decline due to the shift to electric vehicles, which could drive weaker competitors out of the market.
President-elect Donald Trump is expected to support local production of cars in the U.S., imposing new tariffs on vehicles from Mexico and potentially from other countries, and to reverse many existing pro-electric vehicle policies, industry associations and executives said last week.
Favre added, however, that the two previous administrations had backed local production, and that while a new Trump government may bring in new policies, the end impact may not be significantly different.
“They are extremely protective, it is something that we find very positive,” he said, noting that local production by automakers and suppliers already required a significant part of the added-value to be made locally.
OPmobility has 26 factories in North America, and more than twice as many in Europe. It has recently said it will close two fuel tank factories in Germany and France.
The U.S. market will account for 50% of OPmobility’s tank turnover by 2030, up from 40% currently, added Favre.
Less restrictive regulations in the U.S. compared with Europe means it is also set to benefit from advances in technologies like autonomous driving, said Favre.
