Valeo Proposes Closure of Two UK Sites

    PARIS--Jan. 25, 2001--Valeo (Paris: FR; OTC: VLEEY) -- Valeo today announced the planned closure of two UK production sites situated in Worksop, Derbyshire and Gorseinon, near Swansea.
    The Worksop site - known as Labauto - manufactures wiring harnesses for PSA and employs 250 people. The Gorseinon site manufactures heating and air-conditioning equipment, principally for MG Rover and General Motors, and employs 330 people.
    The company management is in consultation with employees to discuss the proposals and all the possible alternatives.
    The Group explained that the planned closures were the result of a significant drop in car manufacturing volumes, combined with certain customers' decisions to transfer production to other locations. These factors mean that it is no longer economically viable to continue production at these two sites.
    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 centres, 10 distribution centres and employs 75,000 people in 25 countries worldwide.

For more information on the Group and its businesses, please consult our Web site: www.valeo.com