RI2014233 ART. The prospects for car equipment makers

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Abstract

The automobile industry is an ecosystem where car-makers subcontract a sizeable portion not only of parts and components but also of the work of designing systems for vehicles. Current trends in the industry challenge parts makers, such as Valeo, which is trying to defend its position as number one or two worldwide in this branch. In terms of technology, the reduction of CO2 emissions and the new, autonomous or intuitive, steerage of vehicles are opportunities for whoever is willing to spend effort on innovation. In terms of geography, the shift of the automobile market’s center of gravity toward emerging countries (notably in Asia) opens a source of growth for those parts makers who have been able to deploy their manufacturing capacities worldwide thanks to an efficient system of production and to faultless product quality and reliability. None of this would be possible for Valeo if it did not have a solid territorial base in France and Europe.

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