Valeo Group (China) Business Report FY ended Dec. 2012

Business Highlights

Business Overview for recent years
-Valeo plans to double its China sales to 1.5 billion euros (12.5 billion yuan) by 2015. In 2011, sales of Valeo group rose by 13% to 10.9 billion euros.Valeo's China sales accounted for 8 percent of its global total. According to Valeo,  China will contribute 11 percent of its global revenue by 2015. As sales rise, the company expects to increase its workforce in China from 9,600 to 15,000 people. By 2020, Valeo aims to quadruple its China sales to 25 billion yuan.(From a press release on May 1, 2012)

Joint Ventures

-Valeo and Ichikoh Industries, Ltd. announced that they have reached a basic agreement to restructure their existing lighting businesses in China. The majority of each company's subsidiaries and affiliates in the country will be placed under the management of Valeo Ichikoh Holding Co., Ltd., a Valeo-Ichikoh joint venture created to oversee their operations in China. The holding company is owned 85 percent by Valeo, and 15 percent by Ichikoh. (From a press release on Sep. 11, 2012)

-The Electronic Business Division of China Auto Electronics Group Limited passed a product screening conducted by Valeo’s SQA Division in France and the procurement division in Asia. This gave China Auto Electronics the qualification to supply its headlight controllers to Volvo vehicles. (From a press release, August 13, 2012)

New plants
-Valeo Guangzhou Niles Electronics Co., Ltd., a comfort driving assist system division of the Valeo Group (China), held an opening ceremony on May 11, 2012. The twenty-second facility of Valeo China now employs 160 people, while intending to increase the number to 1,500 in the future. The plant will manufacture switches and other products for automobiles. (From news releases issued by multiple sources on May 14, 2012)


New products

-Valeo presents five major innovations in 2012 China Beijing Auto show, including: The second generation of this parking assistance system Park4U®; Air intake module: a new air intake architecture for diesel and gasoline engines. The air intake module, integrating a water cooled charge air cooler, contributes to an increase in energy efficiency and enables more compact charged combustion engines with lower emission levels; BeamAtic® PremiumLED: smart LED lighting system. Headlamps equipped with BeamAtic® PremiumLED provide maximum visibility, similar to high beam, without blinding oncoming or overtaking motorists; Hybrid4all: an electrification solution for the powertrain. Hybrid4all is based on a belt mounted motor-generator and a low-voltage architecture (48V). By combining the Stop-Start function, regenerative braking and engine assistance, this system offers fuel savings of over 15% at an affordable cost. It is suited to all vehicles in all categories;Double Dry Clutch Transmissions: a system that enables the motorist to combine the sportiness of a manual gearbox with the comfort of an automatic, while offering fuel savings of up to 10% compared to a conventional automatic. (From a press release on April 23, 2012)

R&D facilities

Name of facility Operating segment City  Overview
Shanghai Technical Centre Valeo Climate Control Systems China Technical Center Climate Control Shanghai - Providing technical support to its Chinese manufacturers, to which it supplies its products based on an OEM agreement.
- Providing technical support in Asia and emerging markets.
Valeo Engine Cooling Systems China Technical Center Engine Cooling
Valeo Wipers Systems Asia Technical Center Wipers Systems
Valeo Lighting Systems China Technical Center Lighting Systems Wuhan, Hubei - Developing lighting system for the Chinese and the global markets
Valeo Shenzhen Electrical Technical Centre Interior Control Shenzhen, Guangdong - Research and development of interior control products

Investment Activities

Investment in China
-Valeo plans to invest 112 million yuan in Hubei Valeo Auto Lighting’s Phase Ⅲ expansion project in  Wuhan Economic and Technological Development Zone, in order to reach the annual production capacity of 500million lamps. After the expansion, the plant will produce another 500 thousand headlamps and rear lamps respectively and achieve the annual sales of 1.7billion yuan.(From a press release on March 20, 2012)