Shanghai-GM Names Valeo its Best Supplier in China as Investments in Research and Training Take Root

SHANGHAI, China, January 30 -- Valeo has received the Best Supplier of the Year award from Shanghai-GM for its quality, service, delivery and technology in 2003.

Shanghai General Motors presented the award to Shanghai Valeo Automotive Electrical Systems' General Manager Yang Dejun on January 18, during the yearly supplier meeting of Shanghai-General Motors.

Valeo has grown rapidly in China since it entered the market in 1994. Sales in the region have grown by around 30 percent annually and are expected to almost double in the next two years to reach up to 600 million euros. In December 2003, Valeo announced that it signed agreements to increase its shareholding in two of its Chinese joint ventures in Shanghai one for Electrical Systems and the other for Wiper Systems.

Late last year, Valeo opened a new technical center in Wuhan to develop advanced automotive lighting systems for both Chinese and European car makers. The company will also introduce a training program in its Chinese facilities to implement Valeo's 5 Axes production methodology.

With eight joint ventures and three licensees, Valeo employs 2,300 people and serves all major passenger car and truck OEMs in the Chinese market. Valeo produces a wide range of automotive systems and components: lighting systems, starters and alternators, wiper systems, security systems, heating, ventilation and air conditioning systems, motors and actuators and clutches. Further product lines are planned in China shortly.

Valeo's Asia Purchasing Office, opened in Shanghai in 2001, expects to triple its sourcing from the current 300 million euros to one billion euros in three years. Already, the office has demonstrated its ability to locate qualified suppliers and train them where necessary to meet global standards in cost-competitiveness, quality, productivity, service, innovation and technology. The Purchasing Office is a key resource for all 11 Valeo Branches throughout the world.

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 125 plants, 55 R&D centers, 9 distribution centers and employs 67,000 people in 25 countries.

Media contact: Malene Pickles, +33 1 40 55 20 74 malene.pickles@valeo.com