Valeo Group (China) Business Report FY ended Dec. 2016

New Plant

-Changshu Valeo Automotive Wipers Systems Co., Ltd., Valeo's new subsidiary, began operations on November 7, 2016. The company is Valeo's third wiper system production facility in China next to Wenling and Shanghai. The 17,000-squre-meter-plant currently employs 300 people. It has 13 advanced automated production lines and serves as major supply base for wipers. Valeo plans to add facilities for installation and inspection of wipers in the future. (From news releases issued by multiple sources on November 9, 2016)

-Guangzhou Valeo Engine Cooling Co., Ltd., a subsidiary of Valeo, officially started production at its new plant in the Wuhan Economic & Technological Development Zone in March 2016. A total of CNY 18.5 million was invested in this plant that produces front-end modules made up of bumper beams, horns, radars, engine condensers, radiators, water tanks, fans, headlamp brackets, and other components. The plant's annual production is expected to reach 110,000 units, which is worth CNY 150 million. The plant currently has 3 assembly lines and 1 injection molding line. The front-end modules will be supplied initially for Dongfeng Honda's New Civic. They are expected to be used also on the CR-V. (From news releases issued by multiple sources on March 28, 2016)

Strategic Cooperation

-In November 2016, Valeo and Shanghai Jiao Tong University signed an agreement to jointly establish an R&D center for automotive technologies. This center is expected to open officially in 2017. It will support Valeo's development activities in four business areas: Powertrain Systems, Comfort and Driving Assistance Systems, Thermal Systems, and Visibility Systems. (From news releases issued by multiple sources on November 15, 2016)

-In November 2016, Valeo and the Yogomo Group have signed an agreement to collaborate on electric vehicle (EV) technology. In accordance with this agreement, Kailong East Automobile in the Yogomo Group will use Valeo's high power components like motor controllers and battery chargers for its EX EV. (From news releases issued by multiple sources on November 3, 2016)

R&D structure

-As of April 2017, Valeo employs over 5,100 engineers and 89 experts in China.

R&D facilities

-In September 2016, Valeo Group (China) and the Wuhan Economic and Technological Development Zone signed an agreement on Valeo’s plan to establish an R&D center in the zone. The new center will become the Group’s comprehensive R&D facility in China based on Valeo Lighting Systems Hubei Technical Center as a founding body. It will have optical, electronic, and simulation laboratories and will develop advanced technologies like automotive lamp, parking assist, driving assist, and man-machine interaction systems. (From news releases issued by multiple sources on September 18, 2016)

<R&D Centers>

Name of facility	Operating segment	City	Overview
Valeo Wipers Systems Asia R&D Center	Wipers Systems	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 Global Electronics R&D Center	Electronics	Shenzhen	-Research and development of electronic products.
Valeo China R&D Center	Comprehensive R&D center	Wuhan, Hubei	-Research and development lights, automatic parking, driving assistance, human-computer interaction and other advanced technology

Sales by Product

(in million yuan)

Facility	Product	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013
Shanghai Valeo Automotive Electrical Systems Co., Ltd.	Starters, Alternators	3,858.33	3,718.47	3,368.60
Valeo Shanghai Automotive Electric Motors & Wipers Systems Co., Ltd.	Wiper systems	906.77	867.79	690.89
Wuxi Valeo Automotive Components Systems Co., Ltd.	Actuators, sensors, engine controllers	N.A	182.84	99.80
Tianjin Valeo Automotive Parts Co., Ltd.	Radiators	22.82	N.A	N.A

Source : China Automotive Industry Yearbook (Issued every October)

Volume of production by product

(in thousand units)

Facility	Product	FY ended Dec. 31, 2014	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013
Shanghai Valeo Automotive Electrical Systems Co., Ltd.	Alternators	3,870	6,870	6,070
Shanghai Valeo Automotive Electrical Systems Co., Ltd.	Starters	3,870	4,260	4,750
Valeo Shanghai Automotive Electric Motors & Wipers Systems Co., Ltd.	Wiper systems	N.A	8,033	5,867
Tianjin Valeo Automotive Parts Co., Ltd.	Radiators	16	N.A	N.A