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Valeo Signs Memorandum of Understanding for First Joint Venture in Japan

21 October 1999

Valeo Signs Memorandum of Understanding for First Joint Venture in Japan

    PARIS, Oct. 21 -- Valeo and Unisia Jecs Corporation just
signed a Memorandum of Understanding (MOU) to form a joint venture company in
Japan for the design, production and sale of clutches, components and systems
for manual and automatic transmissions.  Valeo would become the majority
shareholder in the proposed joint venture.
    The newly formed company will incorporate the clutch division of Unisia
Jecs, which generated sales of 10 billion yen (88 million euros) in fiscal
year 1998, ending March 1999.  Manufacturing will be located in an existing
Unisia production facility with 250 employees in Atsugi-Shi, a northern suburb
of  Tokyo.
    Following the signature of the MOU, a final agreement is expected by
year-end.
    Commenting on the intended joint venture, Valeo Chairman and CEO Noel
Goutard said, "Unisia Jecs would add a new dimension to Valeo's expertise and
global presence in clutches and transmissions.  Our collaboration would also
provide Valeo with  its first industrial base in Japan.  By forging new
technological and manufacturing associations in Japan, we will better serve
Japanese vehicle manufacturers domestically and worldwide."
    Koichiro Tohda, President and CEO of Unisia Jecs, added, "Valeo is world
leader in clutches.  Making efficient use of our combined resources would
enable us to offer breakthrough technologies to our customers and together
expand our business activity."
    Valeo estimates that this year its combined sales in clutches and
transmission components will total more than 600 million euros.  In this
activity, the Group currently has 22 manufacturing sites in Europe, North and
South America and Asia, including Korea, China and India.
    Valeo is an independent industrial group fully focused on the design,
manufacture and sale of components, systems and modules for cars and trucks.
Present in the original equipment and aftermarket segments, Valeo is among the
world's top 10 automotive suppliers with estimated 1999 sales of approximately
7.7 billion euros.  The Group employs 50,400 persons worldwide and has
113 production facilities, 29 Research and Development centers and
10 distribution centers in 20 countries.
    For more information, contact Kim Derderian of Valeo, +33-1-4055-2034.