Valeo Sells Its Stake in Motrol and Reinforces Its Activities in Brazil

21 May 1999

Valeo Sells Its Stake in Motrol and Reinforces Its Activities in Brazil

    PARIS--May 20, 1999--The Valeo Group sold its 50% stake in the Brazilian company Motrol, a manufacturer of automotive door latches, on May 18, 1999.
    The stake was sold to the Magna group, which already held 50% of Motrol's capital.
    Motrol generated sales of 16 million euros in 1998. The company employs 100 people at a plant near Belo Horizonte, in the state of Minas Gerais.
    This disposal follows the sale of Prismatic, a Brazilian glass lens manufacturer, announced on April 27, 1999. The Group also recently sold its stake in Ergom, a manufacturer of piping for fuel tanks located in Belo Horizonte.
    These operations, which include the recent closing of several plants, are part of Valeo's program to rationalize and dispose of its non-strategic activities in Brazil and Argentina.
    At the same time, Valeo is pursuing its investment policy in Brazil, to further enhance service to automakers. The Group's capital expenditures in this country will total 27 million euros in 1999. A Friction Materials plant was recently opened in Sorocaba. Three new plants have been launched in Campinas, one for Wiper Systems & Electric Motors, another for Clutches & Transmissions and a third for Alternators and Starters. Valeo Distribution also opened a new center in Sao Paulo early this year.
    Meanwhile, Valeo's Lighting Systems, Engine Cooling, Climate Control and Security Systems Branches have stepped up their rationalization and modernization efforts in the Sao Paulo region.
    Group sales in the Mercosur region are expected to total 170 million euros in 1999, for a workforce of 1,850 people.
    Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. With sales of 6,019 million euros in 1998, it ranks among the world's top 10 automotive suppliers. The Group has 111 plants, 29 R&D centers and 11 distribution centers in 20 countries worldwide.
    For more information on the Group and its businesses, please consult our Web site: http://www.valeo.com.