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October 23, 2000 01:00 AM

Valeo plans reorganization to fit module trend

Stephane Farhi
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    PARIS - Valeo plans to reorganize itself to better fit the industry's shift to modules.

    Company sources say Valeo's restructuring will group the existing 11 component branches into larger entities.

    A spokesman for the supplier declined to comment.

    Sources say the restructuring could happen quickly because Valeo is establishing joint ventures with other suppliers to provide complete modules to carmakers.

    Valeo's 11 divisions are each responsible for developing, manufacturing and marketing the components and systems they make.

    The 11 divisions are divided into three business areas. Electrical and electronics is the biggest division, with 56 percent of Valeo's E7.7 billion sales last year. It includes electronics, lighting, wipers, electric motors and alternators. The others are engine cooling and climate control, and transmissions.

    Valeo's current structure was created by former chairman No'l Goutard to push competition between the division managers.

    Since Andre Navarri succeeded Goutard last May as CEO, four divisions focused on modules have been created. They cover front ends, rear ends, doors and cockpits, but each reports to one of the component branches.

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