Valeo to Close Arcola, Illinois Facility

    AUBURN HILLS, Mich., Feb. 1 Valeo announced plans to close
its Arcola, Illinois production site.  Production is scheduled to cease in
late April.
    Sixty-seven hourly and 11 salaried employees will be affected.  Company
management is consulting with employees and plans to provide assistance.
    Since June 1997, the plant has manufactured automotive heating and cooling
systems for customers including Isuzu and Subaru.  The closure is the result
of a significant drop in production volumes by auto manufacturers,
particularly DaimlerChrysler, where first quarter 2001 schedules are down 26
percent and forecasts for the calendar year are down 11 percent.
    The Arcola plant's production will be transferred to Valeo's Hamilton,
Ohio facility.
    "The need to rationalize operations to meet the demands of global
customers is clear.  We appreciate the many contributions Arcola associates
have made over the years and regret having to close this plant," said Jack
Shaffer, general manager, Climate Control NA2 operations.
    Valeo is an independent industrial Group fully focused on the design,
production and sale of components, integrated systems and modules for cars and
trucks, and ranks amongst the world's top automotive suppliers.  The Group has
175 plants, 41 R&D centers, 10 distribution centers and employs 75,000 people
in 25 countries worldwide.