Valeo and Zexel today announced the formal setting up of two joint ventures in automotive thermal applications. This is in line with the global alliance they had framed in their agreement of June 25, 2000. The transaction has been completed in accordance with the antitrust regulations applicable in Europe and North America.

  • Valeo initially owns a 40% shareholding in the new joint venture Zexel Valeo Climate Control Corporation, with an option to raise its stake to 50% after a period of three years. Zexel Valeo Climate Control Corporation operates Zexel's former air conditioning systems business in Japan and other Asian markets (ASEAN and Korea) as well as Zexel's worldwide compressor business. Sales in the first year of operation should amount to 1.1 billion euro.

  • The second joint venture, Valeo Zexel Engine Cooling, targets engine cooling systems in Asia and is owned 60% by Valeo and 40% by Zexel Valeo Climate Control Corporation.

Commenting on the completed alliance, Valeo Chairman & CEO Andre Navarri stated: "We are very pleased that the agreement with Zexel is now complete. The combined business has created a world leader in thermal systems and compressors, with tremendous growth opportunities."

Concurrently, Valeo has acquired the European and North American climate control activities of Zexel (1999 sales of 160 million euro). This brings Valeo Climate Control sales in Europe, North and South America to over 1.4 billion euro. Zexel has acquired a 7% share in Valeo's Climate Control Branch.

Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks among the world's top automotive suppliers. The Group achieved sales in 1999 of 7.7 billion euro. It has 118 plants, 39 R&D centers, 10 distribution centers and employs 55,000 people in 20 countries worldwide.

For more information on the Group and its businesses, please consult our Web site: www.valeo.com