French auto parts supplier Forvia is exploring the sale of its Clarion Electronics business, a move that would help the company reduce debt and streamline operations, according to Gasgoo, citing people familiar with the matter.
The company is working with an advisory firm to evaluate options for the Japan-based unit, which is headquartered in Saitama Prefecture. Potential buyers could include Japanese companies and other Asian strategic investors, the people said, asking not to be identified because the discussions are private. The review is at an early stage and may not result in a deal, they added.
Clarion Electronics develops cockpit-related systems, including displays, infotainment, driver monitoring and automated parking technology, according to its website. In the first half of 2026, the unit generated sales of 776.5 million euros (about $898 million), up 14% year on year, and accounted for 7.4% of Forvia's total revenue in the period.
From audio pioneer to cockpit supplier
Clarion Electronics traces its roots to Clarion, a well-known Japanese maker of car audio and navigation systems. In March 2019, Faurecia, which later merged with Hella to form Forvia, completed a full acquisition of Clarion and took it private, creating Faurecia Clarion Electronics. In March of this year, Forvia announced it would move the global headquarters of Faurecia Clarion Electronics back to Japan.
Forvia has been simplifying its business and cutting debt in recent years, focusing resources on higher-margin areas such as autonomous driving and energy management. This year, the company reached an agreement with Apollo Global Management to sell its automotive interiors business. It also announced plans to split operations into two clusters—growth businesses and value businesses—with Clarion Electronics placed in the latter.
Forvia's shares have fallen 33% this year, reducing its market value to 1.8 billion euros.
