Shares in Valeo fell on Thursday after comments from automakers Ford, General Motors and Nissan raised the spectre of weakening demand for the French company’s car parts, Reuters reported.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

“People are reading negatively into GM’s and Ford’s comments on production cuts and they’re also worried about the impact of Nissan’s plans to cut its output as they don’t really know how exposed Valeo is to these three big companies,” a trader told the news agency.


A Valeo spokesman reportedly confirmed it supplied the three groups, but declined to comment further.


By 1111 GMT, Valeo shares were down 2.1% at €29.04, lagging the DJ Stoxx European auto sector index , which was up 0.3%, Reuters said.


The news agency noted that GM and Ford both said on Wednesday they would cut production by more than expected after weak US sales in November, while Nissan said steel supply problems could resurface in March and lead the company to cut output by 15,000 vehicles.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“General Motors, Ford and Nissan are three good reasons to forget about the oil price’s fall today,” a second trader told Reuters, as oil prices tumbled to an 11-week low of below $45 a barrel.


Higher oil prices increase the cost of producing plastic car parts, the report noted.


Some analysts reportedly said they were a little surprised by the strong impact of the carmakers’ comments on Valeo shares, but added that they had brought to the fore concerns that could keep the stock under pressure for some time.


“It’s nothing we haven’t been talking about for the past three or four months,” a London analyst said to Reuters of Nissan’s steel supply problems, adding however: “It does show raw materials are going to be the major issue for the next year. We are bearish on their impact, and perhaps Valeo is suffering as evidence of raw material problems grows.”