On May 30th, 2014, the "20th Anniversary of Valeo China and the Completion of Shanghai Valeo Auto Electric Factory" was held in Shanghai. Valeo Global CEO Jacques Aschenbroich made a speech in Shanghai and looked forward to working with Valeo China partners to face greater challenges and brilliance to help the future development of the Chinese auto industry.
Valeo Group's largest factory in the world
In 1995, Valeo and Huayu Automotive Systems Co., Ltd. jointly formed Shanghai Valeo Automotive Electrical System Co., Ltd., which mainly produces and sells starters and generators for the matching of main engines. Shanghai Valeo Automotive Electrical System is one of the earliest factories established by Valeo China, and is also an important base for Valeo Powertrain Division in China. Valeo Powertrain Business Unit is one of the Group's four core businesses and plays a key role in the automotive industry's efforts to reduce CO2 emissions and enhance driving comfort. After the completion of the new factory in 2014, it covers an area of ​​nearly 80,000 square meters, with an annual output of more than 10 million pieces. It is the world's largest plant of the Valeo Group, and it is also the largest motor vehicle manufacturer in China with a full range of products. For over 20 years, Valeo has continuously brought world-class energy-saving and emission-reduction technologies and safe and comfortable automotive technology solutions to the Chinese market. Innovative products produced by Shanghai Valeo Automotive Systems provide automotive manufacturers with practical and convenient solutions for hybrid power and fuel consumption reduction.
As another important milestone in the development of China, the completion of the new plant not only presents a great gift for Valeo China, which is the 20th anniversary of its establishment, but also reflects Valeo’s strong confidence in the future development potential of the Chinese market and Valeo’s China’s commitment to sustained development is the proof of Valeo’s deepening development strategy of “taking root in China and serving Chinaâ€.
On the day of the event, Valeo Global CEO Jacques Aschenbroich and Valeo China President Edouard de Pirey accompanied Valeo’s Chinese partner, representatives of the Chinese and French governments, and other leaders from all walks of life. The new factory reviewed the development of Valeo's 20th anniversary and witnessed Valeo's new starting point in China.
Rooted in China to serve China
The two core strategies of the Valeo Group are: Commitment to CO2 emission reduction and the development of intuitionistic driving technologies, as well as comprehensive promotion of development strategies in Asia and emerging countries. With pioneering innovations and strong global strategic guidance, Valeo opened its first factory in China in Wenling, Zhejiang in 1994, which opened the curtain for sustainable development in China. With the progress and development of China's economy and society, Valeo is firmly rooted in the Chinese market with innovative technology and high-quality services. In order to meet the needs of international customers and local Chinese customers, Valeo China continues to expand its business presence in China. To date, it has 26 production sites and employs more than 14,000 people. China has also become the first country in the group with the largest number of employees worldwide.
Since entering China, Valeo has been following four steps to expand its business in China: serving traditional international clients, developing local Chinese auto companies, developing localized products for China, and developing technologies for serving the global market in China. This makes Valeo China's development continue to accelerate: sales from 2007 to 2011 doubled, the total sales of the Chinese market accounted for, has increased from 6% in 2008 to 8% in 2011, by 2012 Rise to 10%. In 2012, the Chinese market accounted for 18% of the Valeo Group's total orders, and the proportion of orders in 2013 increased to 24%. In 2013, Valeo's sales in China reached 12 billion yuan, and the Chinese market accounted for 13% of the sales of the Valeo OEM. Among them, the matching sales of mainframe plants in China grew far beyond the Group's performance in other regions: In 2013, OEM sales increased by 31%, exceeding the market average by 16%. In addition, Valeo's annual investment in China exceeds 1 billion yuan, and has set a goal of doubling sales every four years. By 2016, China will become the country with the first group sales.
Regarding how to achieve this goal, Mr. Jacques Asshenba said, “The spare parts industry in which Valeo is located is an innovation-driven industry. R&D is very important to us because a new model will carry a new one. Technology must have a certain period of research and development, we must plan ahead, and we must fully invest in and prepare for research and development before we can maintain our market-leading position, and we must double sales every four years. Goals, we have enough confidence, because we have accumulated sufficient orders in the past years, and these orders are from our new technology and innovative solutions.In addition to innovation and technology, the cost is the key to achieve our goal .
The strong performance growth is inseparable from Valeo's continuous investment and business expansion in China, research and development, and the cultivation of local talent. Valeo invests 10% of the OEM's sales in R&D each year, and invested more than 1 billion euros in R&D in 2013. With strong R&D support, innovative product and technology orders account for 30% of Valeo's total orders. Technological innovation and excellent quality have provided strong support for Valeo's development in China. Adhering to the concept of “taking root in China and serving Chinaâ€, Valeo has continuously strengthened its research and development capabilities in China. Today, it has more than 3,300 engineers and has established 3 research centers and 10 development centers in China. "Made in China" to "Created in China".
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