A 6% operating margin target at Valeo for 2010 is within reach, chairman and chief executive officer Thierry Morin was reported to have said.

"We can't take it for granted yet but we are on the way," Morin told a shareholders meeting after explaining Valeo's strategy for 2001 to 2010, based on widening its client base, refocusing its supplier base to low-cost countries and an innovative product range, according to a Reuters report which noted the margin was 3.4% in 2006.

The news agency noted that Morin and his board need to persuade shareholders to back its strategy and to reject proposals by the single-biggest investor, Pardus, with 14.2% of the capital, to have eight nominees elected to the Valeo supervisory board and to obtain a strategic review.

Pardus also has a 17% stake in Visteon Corp and has been campaigning for a tie-up while Valeo has rejected a full merger with the US rival, Reuters added.

Morin reportedly reiterated that Valeo planned disposals of assets with some EUR2bn in sales and targeted acquisitions.