Valeo
| Company type | Public |
|---|---|
| Industry | Automotive supplier |
| Predecessor | Société Anonyme Française de Ferodo |
| Founded | 1923 |
| Headquarters | Paris , France |
Area served | Worldwide (33 countries) |
Key people | Jacques Aschenbroich (CEO) |
| Products | Automotive components and systems |
| Owner | Publicly traded company |
Number of employees | 113,600 (2018) |
| Website | www |
Valeo is a multinational automotive supplier based in France, publicly traded on the Paris Stock Exchange and included in the CAC Next 20 Index. It delivers an extensive array of products to vehicle manufacturers and the aftermarket sector. The Group employs around 113,600 individuals spread across 29 countries, managing 186 manufacturing facilities, 66 R&D centers, and 15 distribution hubs. In 2018, Valeo recorded a 4% increase in revenue, reaching €19.1 billion. The company consistently ranks as the top patent applicant in France.
History
The company was established in 1923 under the name Société Anonyme Française de Ferodo in Saint-Ouen, near Paris. Initially, it operated by distributing brake linings and clutch facings under license from Ferodo. Production of clutches commenced in 1932, the same year it became listed on the Paris Stock Exchange.
During the 1950s, Valeo expanded its production capabilities within France. It broadened its product range by incorporating braking systems (1961), thermal management components (1962), lighting equipment (1971-1978), and electrical systems (1984).
Its international growth began in the 1960s with entries into European markets including Spain and Italy, followed by expansions into Brazil (1974), the United States (1980), Tunisia (1984), South Korea and Turkey (1988), Mexico (1989), China (1994), India (1997), Central and Eastern Europe, and Egypt by 2005. By 2018, Valeo operated in 33 countries.
The firm adopted the name Valeo in May 1980. Significant acquisitions include German companies Peiker and Spheros in 2015, as well as FTE automotive in 2017.
In the early 2000s, Valeo pioneered parking assistance technologies utilizing ultrasonic sensors. In 2017, it showcased a prototype electric vehicle with low-voltage architecture at the Consumer Electronics Show held in Las Vegas.
In February 2021, Valeo revealed plans to invest $5 million to establish an assembly plant in Bessemer, Alabama, projected to generate approximately 70 new jobs.
Strategy
Under CEO Jacques Aschenbroich since 2009, Valeo has prioritized innovation focused on lowering [[CO2 emissions]] and advancing intuitive driving experiences. The strategy also emphasizes growth within rapidly expanding markets, particularly across Asia and emerging economies. Between 2009 and 2018, the workforce expanded from 45,000 to over 113,600 employees while sales rose from €7.5 billion to €19.1 billion, notably fueled by robust performance in China.
Valeo dedicates 11.8% of its turnover to research and development activities, employing roughly 17,900 researchers. Its status as France’s foremost patent filer in both 2016 and 2017 highlights its commitment to technological innovation.
Organization
Valeo's global operations encompass approximately 113,601 employees distributed over 33 countries, with control of 184 manufacturing plants, 55 R&D centers, and 15 distribution facilities.
Four Business Groups
The company is structured into four main business divisions:
- Comfort & Driving Assistance Systems – delivering technologies that enhance safety, enable intuitive control, support autonomous driving, and facilitate connectivity
- Powertrain Systems – focusing on reducing CO2 emissions through electrification solutions, automated transmissions, and efficient internal combustion engines
- Thermal Systems – providing solutions for vehicle thermal regulation and passenger comfort
- Visibility Systems – developing technologies to ensure optimal visibility for drivers under all conditions
Furthermore, Valeo Service supplies original equipment replacement parts to automakers as well as aftermarket components for independent distributors.
International Business
Growth in original equipment sales by region:
- Europe and Africa: 46% of total sales
- Asia: 32% of total sales
- North America: 20% of total sales
- South America: 2% of total sales
Financial statistics
- Sales (in millions)
- Sales distribution by Business Group (2018)
- Driving Assistance Systems: 19%
- Powertrain Systems: 26%
- Thermal Systems: 26%
- Visibility Systems: 29%
- Operating margin (% of sales)
Asbestos
In 2006, Valeo, along with its executives and corporate medical personnel, faced charges after a ten-year legal investigation concerning involuntary manslaughter and injuries connected to the company's past use of asbestos, which resulted in multiple employee fatalities. Since then, Valeo has adopted rigorous health and safety protocols, maintaining thorough oversight of both current and former staff. This approach was officially established through a national agreement with the French government in April 2009. Additionally, the company took measures to secure four former industrial locations impacted by asbestos contamination.