2011 Registration Document - Valeo

1 Presentation
PAGE 14
of Valeo and its businesses
Valeo’s strategy
1.2.4 The 5 Axes that support the strategy
Valeo’s corporate culture is forged around excellence in
operations, which stems from world-class quality standards,
the values adhered to by all Valeo employees , and its strong
commitment to social and environmental issues.
To ensure customer satisfaction in terms of costs, quality
and delivery , Valeo has developed its 5 Axes methodology ,
which is applied by all sites. The foundation of the 5 Ax es
is the continuous improvement and the principle of getting
things “right the first time”. At Valeo, Total Quality sums up
the mindset that is applied by all employees , at all levels and
at all times. These 5 Ax es – Involvement of Personnel, Valeo
Production System, Constant Innovation, Supplier Integration
and Total Quality – are fundamental in enabl ing the Group to
implement its strategy and achieve its goals.
Involvement of Personnel
Involvement of Personnel, which helps company performance
by placing value on human resources and optimizing staff
efficiency, is the foundation of the other 4 Axe s.
Human Resources must pr epare and accompany the Group’s
growth , through a dynamic hiring policy – especially in highgrowth
regions.
This aim of this recruitment policy is to identify the key skills
that Valeo requires and attract, develop and retain talent,
both in emerging countr ies and in Valeo’s traditional markets .
Additionally, as innovations represented 30% of order intake
in 2011, recruiting engineers and technicians is a challenge
owing to stretched job markets in some countries and
regions.
Valeo has opted for a global policy that goes beyond
financial compensation as the sole criteria , one which
encompasses fixed and variable remuneration along with
career development, personal levels of autonomy, and
training. Another aim of this policy is to emphasize the
Group’s values as well as its determination and initiatives
in favor of well-being at work and a better life-work balance
among its employees .
Involvement of Personnel is essential for improving Group
profitability, especially in support functions. When putting
the new organizational structure in place in 2010, the Group
set up shared service centers in various regions. Cash
management, accounting, human resources, logistics, and
quality have been grouped together in each country to unlock
synergies and reduce general and administrative overheads.
The target is to reduce these costs to 3.5% by 2015 .
2011 Registration D ocument - VALEO
Valeo Production System
The Valeo Production System is acknowledged throughout
the industry for its effectiveness in quality and cost
management. Its foremost aim is to produce quality products
with the deadlines – decisive criteria for ensuring customer
satisfaction. This lays the foundation for profitable operations
today and growth tomorrow.
The second aim of the Valeo Production System is reducing
manufacturing costs, labor expenses, inventories and capital
expenditure.
Installing production facilities in emerging countr ies reduces
inventories and logistics costs (when delivering locally), cuts
costs and capital expenditure . Altogether, Valeo each year
dedicates between 50% and 60% of capital expenditure to
Asia and emerging countr ies.
Constant Innovation
To meet the requirements of its various customers and retain
its technological advantage , Valeo must constantly develop
new products and systems that meet the demands of
different global markets. There is no “one size fits all” solution,
for example, when it comes to reducing fuel consumption for
small or large vehicles, whether entry level or premium , or in
differing driving conditions.
Valeo regularly analyzes its R&D portfolio and market
developments to ensure that it is offer ing or developing the
products and solutions that will form the foundation of the
vehicle of tomorrow. Valeo is paving the way for profitable
growth in the future through high levels of net R&D expenditure
in the coming years.
Aside from upstream research centers, most of which are
located in France, Germany and Japan, Valeo has developed
a network of technical and commercial offices located close
to its customers so that their needs can be better catered
to. Product d evelopment and manufacturing work in close
collaboration so as to ensure the compatibility between these
innovations and production processes .
Lastly, Valeo relies on shared resource centers in low-cost
countries to enhance synergies and cut development costs.
One such center is the software development center in Cairo
(Egypt). Other centers develop electronic circuits in Shenzen
(China), or provide mechanical design and simulations in
Chennai (India). Another, in Wuhan (China), specializes in
lighting systems.