Valeo has announced that it has finalised a transaction with joint venture partner Hubei Auto Lighting to increase its shareholding in the joint venture company from 51 to 75 percent.
Valeo says that this increase is a demonstration of Valeo’s commitment to the Chinese market and to carmakers sourcing from this region. The company expects to expand its capacity whilst increasing its market share in lighting systems and says that the joint venture will further benefit from Valeo’s standardised manufacturing methods that promise carmakers the same quality regardless of production origin.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Formed in 1994, the joint venture produces lighting and signaling systems in Wuhan.
Valeo says it also plans to open several new manufacturing facilities in China covering different product lines. The first of these is expected to be announced during the second quarter of 2003.
“Since entering the Chinese automotive market in 1994, Valeo’s sales in the region have grown by around 30 percent annually. Our leadership positions in lighting, wiper, climate control and electrical systems as well as our good customer relationships have enabled world-class technology to be produced cost-competitively,” said Thierry Morin, Chairman & Chief Executive Officer of Valeo.
“The implementation of our 5 Axes methodology, which promises customers total quality through a standardized approach to production, is a distinct advantage. All Valeo’s plants use the same production methods guaranteeing the same high quality levels regardless of location,” Morin said.
