Valeo Reinforces Its Presence in China
SHANGHAI, China--April 24, 2003--Valeo (Paris:FR; OTC:VLEEY) today at the 10th Shanghai International Automobile & Manufacturing Technology Exhibition announced its strategic vision for China. This strategy covers:| -- | Increased investment in selected joint ventures |
| -- | Further development of its aftermarket operation |
| -- | Introduction of several new product lines |
| -- | Continued implementation of manufacturing process standardization |
| -- | Further enhancement of its existing purchasing office based in Shanghai |
Now in its tenth year of operating in China, Valeo, one of the first automotive suppliers to enter the Chinese market, has finalized a transaction with joint venture partner Hubei Auto Lighting to increase its shareholding in the joint venture company from 51 to 75 percent. This increase is a demonstration of Valeo's commitment to the Chinese market and to car makers sourcing from this region. Expected to expand its capacity whilst increasing its market share in lighting systems, the joint venture will further benefit from Valeo's standardized manufacturing methods that promise car makers the same quality regardless of production origin. Formed in 1994, the joint venture produces lighting and signaling systems in Wuhan.
Over the next years, Valeo also plans to open several new manufacturing facilities in China covering different product lines. The first of these is expected to be announced during the second quarter of 2003.
"Since entering the Chinese automotive market in 1994, Valeo's sales in the region have grown by around 30 percent annually. Our leadership positions in lighting, wiper, climate control and electrical systems as well as our good customer relationships have enabled world-class technology to be produced cost-competitively," said Thierry Morin, Chairman & Chief Executive Officer of Valeo.
"The implementation of our 5 Axes methodology, which promises customers total quality through a standardized approach to production, is a distinct advantage. All Valeo's plants use the same production methods guaranteeing the same high quality levels regardless of location," Morin said.
To support its worldwide operations in their sourcing strategy in Asia, Valeo set up a purchasing office in Shanghai in 2001. Drawing on Valeo's rigorous supplier selection procedures which include an advanced quality management system, the office has already demonstrated tangible results with a number of suppliers. The Asia Purchasing Office, a key resource for all of Valeo's eleven Branches, identifies best-in-class suppliers using a range of significant criteria including cost-competitiveness, quality, productivity, service, innovation and technology. With a newly appointed purchasing director this year, Valeo's Asia purchasing office employs a team of thirteen highly-qualified sourcing specialists and quality engineers.
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 132 plants, 54 R&D centers, 9 distribution centers and employs around 69,000 people in 25 countries worldwide (first quarter 2003).