Faurecia has agreed to sell its auto exterior business to Plastic Omnium for an enterprise value of €665m.
The sale covers Faurecia's bumpers and front-end modules business, which had sales of €2bn in 2015. The business employs 7,700 people at 22 sites in Europe, North America and South America.
Faurecia said the sale, combined with January's early redemption of a convertible bond, will almost completely eliminate its debt.
The company said in the statement: "The group will thus be able to accelerate investment in value-added technologies for sustainable mobility and enhanced life on board."
Faurecia, which is 47% owned by French automotive firm PSA Group, said the composite materials part of the exteriors business was not included in the sale.
Faurecia recently posted strong consolidated sales growth, up 4.4% in the first quarter of 2016 and finalized its successful refinancing.
The company's consolidated sales stood at €4,656.7m in Q1, up 4.4% at constant exchange rates and scope from €4,651.8 million restated for IFRS 5.
Product sales (parts and components delivered to automakers) totaled €3,586.6m in Q1, up 4.6% like-for-like and up 2.3% on a reported basis.
