Valeo Business report FY2009

Business Highlights

Financial Overview

(in million euros)
  FY2009 FY2008 Rate of change (%) Factors
7,499 8,677 (13.6) -
Operating Income 84 (52) - -


-The Company's Park4U(TM) system will equip the Ford Lincoln MKS and MKT models. These are the first American vehicles to feature this technology. Park4U automatically handles the maneuver into the parking slot, using ultrasonic sensors located in the front and rear fenders to precisely calculate the length of the slot available. The system is already available on six Volkswagen models and on the Audi A3, and Skoda Superb. (From a press release on Jan 12, 2009)

-The Company announced that it equips the new BMW 7 Series with its multi-camera system. Comprising three cameras, the system offers good visibility of the vehicle's surroundings and allows drivers cruise safely in such maneuvers as parking. (From a press release on Mar. 3, 2009)

-The Company's new Xenon headlight module is being launched as the world first on the new Audi Q7. In addition to traditional high and low beams, this Tri-Xenon lighting technology has a highway mode. This function is activated at 115km/h which doubles the range of conventional Xenon low beams (from 80m to 140m). (From a press release on Sep. 15, 2009)

-The Company has developed "i-StARS" - the latest version of its stop-start system StARS. This new technology is scheduled to enter volume production for PSA Peugeot Citroen in 2010. (From a press release on Sep. 15, 2009)

Business Restructuring

-The Company announced that it will reorganize existing three Domains and eleven product families to create four new Business Groups. "Comfort and Driving Assistance Systems" regroups the product families of Interior Controls and Security Systems as well as the Driving Assistance Domain organization. "Powertrain Systems" regroups the Engine and Electrical Systems and Transmissions product families as well as the Powertrain Efficiency Domain organization. "Thermal Systems" regroups the Climate Control, Compressors and Engine Cooling product families as well as the Comfort Enhancement Domain organization. And "Visibility Systems" regroups the Lighting Systems and Wiper Systems product families. (From a press release on Jul. 15, 2009)


-The Company has acquired 100% shares of its joint venture in China, Valeo Fawer Compressor (Changchun) Co., Ltd. The Company previously held a 60% stake and Fawer 40%. This Chinese entity will thus be renamed Valeo Compressor (Changchun) Co., Ltd. (From a press release on Nov. 2, 2009)


R&D Expenditure

(in million euros)
  FY2009 FY2008 FY2007
Overall 473 639 668
% of operating revenues 6.3% 5.5% 5.5%

R&D Facilities

-At the end of 2009, the Group had 21 research centers and 40 development centers, employing a total workforce of more than 5,770.

  Research centers   Development centers  
Western Europe 18   14  
Eastern Europe -   4  
North America 1   5  
South America -   5  
Asia 2   11  
Africa -   1  
Total 21   40  

-Two development centers were opened in 2009, in Changchun and Wenling in China. Teams working at these centers contribute to projects for both the local market and Group-wide projects.


-In 2009, 411 new patents were filed.

Technological Alliance

-The Company has teamed up with five partners - Michelin, Leroy Somer, Johnson Controls-Saft, GKN and Leoni - to develop systems for rechargeable electric and hybrid vehicles in order to accelerate their introduction in France and internationally.

-The Company and Michelin announced plans to coordinate the development of electric and rechargeable hybrid vehicle systems. Their collaboration involves the development of systems such as the drive train, engine and battery cooling management, climate control, lighting, energy management and tires. (From a press release on Feb. 13, 2009)

R&D Activities

-In 2009, the Company launched two research programs for which the Group received funding of 6 million euros from ADEME. One concerns mild hybrid technology which will increase the quantity of vehicles meeting the European regulation of 120g CO2 per km in 2012 and 95g CO2 per km in 2020. The Company's partners in this project are PSA Peugeot Citroen, Freescale, Alter and Ceitecs, as well as five public research bodies. The second program relates to the thermal management of electric vehicles, in order to improve the autonomy of electric and hybrid vehicles. The Company is working with Renault, Saint Gobain, Hutchinson and two research institutes, CETHIL-INSA and LINC, on this project.

Product Development

-The Company has developed "i-StARS" - the latest version of its stop-start system StARS. This new technology is scheduled to enter volume production for PSA Peugeot Citroen in 2010. (From a press release on Sep. 15, 2009)

BeamAtic(R) Premium
-The Company announced BeamAtic(R) Premium, its Adaptive Front-Lighting System(AFS), will be launched in its Xenon version in 2010. (From a press release on Oct. 14, 2009)

Investment Activities

Capital Expenditure

(in million euros)
  FY2009 FY2008 FY2007
Europe N.A. 415 365
North America N.A. 102 64
South America N.A. 73 32
Asia N.A. 48 92
Eliminations N.A. - -
Total N.A. 638 553


Investments in Property, Plant and Equipment

(in million euros)
  FY2009 FY2008 FY2007
Overall 304 468 435
% of operating revenues 4.1% 5.4% 4.5%

-The Group did make major capacity investments in the Powertrain Systems Business Group to develop its torque converter business in Mexico and China and to develop micro-hybrid systems.
-Investment in emerging countries, such as China and Brazil, remained high at more than 5% of total operating revenues, in order to take advantage of potential for future growth.