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5. Valeo Group (China) Business Report FY ended Dec. 2021

Valeo Group (China) Business Report FY ended Dec. 2021

Business trends

Strengthening R&D in China
-Valeo will step up its research and development in China to strengthen its innovation capabilities locally. In response to demand from outside China, Valeo will launch a number of innovative projects, and in the future, Valeo will develop a large number of technology platforms in China. In addition, the company will establish an innovation mobility center in Beijing to strengthen cooperation with customers. In 2021, the company also focused on software development, such as establishing the company's automobile research facility "CarLab" in Wuhan. (From Valeo official WeChat on September 30, 2021)

Production of headlamps started
-On February 8, 2022, the company's production base in Wuhan completed four expansions and started production of headlamps and other products. The base where production has started this time is the Wuhan No. 2 Factory of Valeo Ichikoh (China) Auto Lighting Co., Ltd. In addition, Valeo will invest CNY 200 million in the new plant to build the most advanced intelligent headlight and key module production lines in Asia. After completing those expansions, it will have an annual production capacity of 500,000 sets of headlights. (From multiple media reports)

Acquisition

Acquired 27% stake in wiper manufacturing subsidiary from Huayu
-HUAYU Automotive Systems Company Limited (HUAYU Automotive) announced that its subsidiary, Shanghai SIIC Transportation Electric Co., Ltd. (STEC), has completed the sale of its 27% stake in Valeo Shanghai Automotive Electric Motors & Wiper System Co., Ltd. (Valeo Wiper) to Valeo International Holding B.V. Valeo Wiper has completed the procedures of equity transfer and industrial and commercial registration, and STEC no longer holds the relevant equity of Valeo Wiper. (From a press release dated March 17, 2022)

Acquired Valeo Siemens
-Valeo Group (Valeo) announced that it has acquired Siemens AG’s 50% stake in Valeo Siemens eAutomotive, and now Valeo holds 100% of Valeo Siemens eAutomotive. Valeo has integrated Valeo Siemens eAutomotive into its Powertrain Systems business with approximately 4,000 employees, including more than 1,600 engineers, 7 production sites in 4 countries (China, Germany, Hungary, and Poland) as well as cutting-edge R&D (laboratories, test benches, simulation tools) and production capacities. It will help Valeo to offer its customers increasingly high-performance solutions such as new 800V silicon carbide-based technologies, co-development and co-production of a rare-earth-free electric motor with Renault, and new bidirectional onboard chargers. It will also enable Valeo to unlock major synergies with an objective representing a total annual profit of EUR 120 million by 2025. These synergies will be achieved progressively, with the full benefit delivered in 2025 (50% in 2023, 75% in 2024, and 100% in 2025). (From a press release dated July 5, 2022)

Product development trends

-Valeo Group (Valeo) announced that it will exhibit new technologies at the Auto Shanghai 2021. The company will showcase lightweight materials that reduce the weight of vehicle’s structural components by 30% and an HD lighting system that enables lighting and projection. In addition, it will present an electric automated delivery prototype, eDelivery4U, for the first time in China. (From a press release dated April 8, 2021)

Exhibition Information

-Valeo is presenting six different solutions at the Shanghai Motor Show. The company presented a new type of heat pump that obtains two-thirds of its energy needs from the outside air, eliminating the need to use energy from the internal battery and using natural refrigerants. EVs equipped with this device can extend their cruising range by 30% compared to conventional EVs in an environment of minus 15 degrees Celsius. In 2021, major European car manufacturers will be the first in the world to use this heat pump technology and natural refrigerant HVAC options in their EVs. Valeo Siemens eAutomotive, a Chinese joint venture, has unveiled an end-to-end electric powertrain system with an electric motor, inverter and reduction gearbox, delivering 100 kW. Other exhibits included the Health Shield, which uses highly efficient filters to protect people from bacteria, allergens and viruses; a 360-degree lighting solution; and the Valeo Mobility Kit, which consists of an electronic control unit and sensors with algorithms. (From a press release on April 19, 2021)
　　

<R&D Centers>

-As of December 31, 2021, Valeo had 13 R&D facilities and nearly 19,000 employees in China.

Patents

-Valeo announced that it has been ranked the world's leading French patent applicant, with 1,913 patents filed in 2019 - of which 53% were filed in France, according to the list published for the first time by France’s INPI industrial property institute. Valeo also came out in third place in the 2020 ranking of patent applicants in France, with 819 patents filed. Its innovations are now protected by a portfolio of almost 35,000 patents worldwide. Patents filed by Valeo in 2020 mainly concerned 48V electrification systems, the new generation SCALA - the only series-produced LiDAR in the world, smart HVAC systems, in-cabin air purification systems and smart lighting systems. Among the 1,913 patents filed, 53% were filed in France, 21% in Germany, 8% in China, 5% in Japan, 3% in the United States, 2% in South Korea, 5% in Europe (excluding France and Germany) and 3% in the rest of the world. (From a press release on June 8, 2021)