Valeo US cutbacks
PARIS - French supplier Valeo will make heavy job cuts at its US plants following a slowdown in the North American market. CEO Andre Navarri said: 'If volumes are decreasing, then we have to decrease the number of people producing.' He said jobs would likely go at all 22 North American plants, employing a total of 14,000.
Navarri's comments coincided with news of the sweeping restructuring at General Motors. GM accounts for an estimated E1.1 billion of Valeo's annual sales.
DETROIT - Delphi Automotive Systems Corp. may revamp or sell up to $5 billion worth of its businesses as slowing vehicle sales erode profits.
Delphi said it plans to fix, sell or close product lines that fail to meet long-term strategic criteria, and shift its business toward more profitable high-tech electronic products. Temporary layoffs will also occur. Delphi employs 216,000 worldwide.
GM accounts for about 72 percent of Delphi's annual revenues.
Ford, Toyota talks
Ford Motor Co. confirmed on December 14 it held high-level talks with Japan's Toyota Motor Corp.
'We're not going to deny that [Ford CEO] Jacques Nasser and [Toyota Chairman Hiroshi] Okuda have met,' said Ford spokesman Paul Wood. 'That's the nature of the automotive business. Everyone is talking these days as companies continue to seek partnerships to cut costs and to explore possible strategic alliances. We cannot disclose the nature or details of these talks.'
Japanese newspapers said the talks included joint development of a new small passenger car for Europe, exchange of environmentally friendly technologies, and sales of Ford cars in Japan.