Valeo Announces a Plan to Close Its Plant at Velenje in Slovenia

    PARIS--Nov. 8, 2001--Valeo (Paris: FR; OTC: VLEEY) announced today that EKO, a subsidiary of the Valeo Group, acquired in September 2000 as part of the purchase of the automotive activities of the Labinal Group, has communicated to employee representatives a plan to close its plant in Velenje, Slovenia.
    EKO, which employs 216 people, produces automotive wiring harnesses. This plan is part of the production site restructuring program announced at the Valeo Group's Annual General Meeting of Shareholders on May 9th 2001, reiterated by the Chairman of Valeo during the meeting of the Supervisory Board of October 18th 2001.
    EKO, subject to ever greater market constraints, has not been profitable for the last three years. Forecasts for the coming years show a deterioration in the situation despite the implementation of plans to improve competitiveness and reinforce employees' skills.
    Production will mainly be transferred to another plant of Valeo's Electronics & Connective Systems Branch at Mateur, Tunisia.
    At the same time significant resources will be implemented to help employees find other jobs.
    The wiring harness activities of the Valeo Group are grouped together within the Electronics & Connective Systems Branch which employs 18,700 people in 13 countries.
    Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 144 plants, 52 R&D centers, 10 distribution centers and employs nearly 72,000 people in 25 countries worldwide.
    For more information on the Group and its businesses, consult our website: www.valeo.com