2007 Reference document (PDF) - Valeo

1998
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Acquisition of the Electrical Systems activity of ITT Industries.
1999
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Acquisition of a division of Mando (electrical systems in South
Korea).
2000
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Creation of a joint venture with Unisia Jecs (transmissions in
Japan).
Acquisition of a stake in Zexel (thermal systems).
Strategic alliance with Ichikoh (lighting systems in Japan).
Acquisition of Labinal’s automotive business (Argentina, Eastern
Europe, France, India, Italy, North Africa, Portugal, Spain).
The first years of the new millennium
In March 2001, Thierry Morin was appointed Chairman of the Board
of Directors of Valeo. The Group launched a program to streamline
its business and give itself greater room for maneuver:
■ industrial rationalization with production reorganized across fewer
sites, and a greater portion of sites in low-cost regions;
■ selective disposals of non-strategic businesses;
■ accelerated integration of recently acquired businesses, notably
the redeployment of the US facility at Rochester acquired from
ITT;
■ partnership approach with a select number of suppliers;
■ intensification of R&D efforts coupled with improved
productivity;
■ a revitalized marketing approach based on the concept of Domains,
which facilitate transversal synergies;
■ creation of technological partnerships with experts in various
fields, including International Rectifier, Iteris, Raytheon and Ricardo,
to introduce new technologies into the automotive industry and
accelerate the development of new products.
This program resulted in the gradual improvement of Valeo’s margins
between 2001 and 2003, and boosted confidence among the
Group’s customers.
In 2004
2007 Reference document - VALEO
Activity
History
Following this rationalization program, Valeo embarked on a new
phase of development as part of “Valeo 2010”, its strategic project.
The Group is establishing a platform from which to emerge as a
global leader in its businesses according to future developments in
the automotive equipment industry.
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The first lever of its development is the expansion of its
technological offering in order to provide solutions that incorporate
systems and services from three Domains: Driving Assistance,
Powertrain Efficiency and Comfort Enhancement. Further synergies
have been generated between P roduct F amilies in terms of R&D
and the marketing of innovative new products.
The second lever of development is in terms of business
development, both through regional growth and through boosting
the Group’s presence in the aftermarket. In geographical terms,
the Group will increase its presence in North America and Asia:
close relations with all manufacturers and the development
of world platforms are strategic advantages. With the creation
of Valeo Service, the Group now benefits from an effective
organisational structure that will enable it to win a greater share
of the Aftermarket worldwide.
The third lever of development is the enhancement of
operational excellence through the optimisation of production
facilities and the supply chain. The objective is to offer total quality
to all customers on all markets.
The fourth lever of development is to optimize the organization
to ensure its efficiency.
In 2005
Guided by its strategic objectives and its financial position, Valeo
implemented a policy of targeted acquisitions designed to reinforce
its three Domains and increase its organic growth potential.
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The Group significantly evolved its structure, notably by increasing
the role of the three innovation Domains, grouping together the
P roduct F amilies into one operational structure, and strengthening
functional teams, particularly the Technical Department.
Valeo acquired the Engine Electronics division of Johnson
Controls (JCEED), which designs and produces complete engine
management systems, electronic control units and electronic
motor drives as well as engine components.
2005 also saw a number of other deals which increased the
Group’s presence in Asia, especially China:
acquisition of shares held by Bosch in the Group’s Climate Control
businesses in Asia (Zexel Valeo Climate Control and Valeo Zexel
China Climate Control). This gave Valeo control of all the share capital
of its climate control activities and compressor production,
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