Latest news with #ChristophePerillat
India Gazette
5 days ago
- Automotive
- India Gazette
French automotive firm Valeo assures continued investment in India after meeting Minister Piyush Goyal
By Shailesh Yadav Paris [France], June 2 (ANI): French automotive supplier Valeo has reaffirmed its commitment to continue investing in India following a one-on-one meeting between CEO Christophe Perillat and Commerce and Industry Minister Piyush Goyal during the minister's three-day tour to France. The global automotive technology company, headquartered in France, expressed strong optimism about India's economic prospects and the country's electric vehicle transformation. Valeo's Pune facility is positioned at the forefront of India's EV revolution, supporting the nation's ambitious mobility goals with expanded operations and cutting-edge technologies. Speaking to ANI after the meeting with Minister Goyal, Perillat conveyed enthusiasm about India's growth trajectory. 'There is a lot of optimism in the Indian economy. We are investing a lot in India. Very happy to share this with the Minister, and we're happy to be there and happy to continue the growth story of Valeo over there,' he stated. The CEO highlighted several factors driving their confidence in the Indian market. 'We think that the passenger car market is going to significantly increase. We've seen that in recent years thanks to better infrastructure, good utilities, a lot of talents from the management we have there (India), from the people we are there. So very excited. It was a fantastic meeting,' Perillat added. Piyush Goyal wrote on X after the meeting,'Held a meeting with Mr. Christophe Perillat, CEO of @Valeo_Group a global automotive supplier company with a strong footprint in India. Appreciate the company's trust in India's growth story and their plans to enhance investments in the country. We discussed avenues to scale up their manufacturing presence in India,'. According to Valeo's assessment, India is accelerating its EV adoption at an unprecedented pace. As in the world's most populous country, the potential for electric vehicle market revolution is enormous. EVs accounted for approximately 5 per cent of India's total vehicle sales in 2023, but this figure is expected to surge dramatically. By 2030, the market is projected to grow by nearly 30 per cent, driven by enthusiastic adoption of electrified two-wheelers and the iconic three-wheel tuk-tuk, which comprised nearly half of all EV sales. Electric SUV models are also increasingly appearing on Indian roads. As a global leader in electric powertrain technologies, equipping one in three new vehicles worldwide, Valeo plays a major role in meeting India's rapidly growing EV demand. At its plant in Pune, Maharashtra, the company manufactures a comprehensive range of EV technologies for local automakers, including Tata Motors and Mahindra & Mahindra, supplying components for two-wheelers, three-wheelers, and SUVs. The Indian government, under Prime Minister Narendra Modi's leadership, has approved a forward-looking scheme to promote domestic manufacture of passenger cars with special focus on electric vehicles. This landmark initiative aligns with India's national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. Today, the Ministry of Heavy Industries issued detailed guidelines for the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMEPCI), which was announced on March 15, 2024. The Department of Revenue, Ministry of Finance, simultaneously issued notifications for reduced import duties in line with the scheme provisions. To encourage global manufacturers to invest under the scheme, approved applicants will be allowed to import Completely Built-in Units (CBUs) of electric four-wheelers with a minimum Cost, Insurance and Freight (CIF) value of USD 35,000 at reduced customs duty of 15 per cent for five years from the application approval date. Approved applicants are required to make a minimum investment of Rs 4,150 crore in accordance with scheme provisions. The initiative is designed to establish India as a premier global destination for automotive manufacturing and innovation while achieving 'Make in India' objectives. The scheme aims to attract investments from global EV manufacturers, promote India as a manufacturing destination for electric vehicles, generate employment, and position India prominently on the global EV manufacturing map. Valeo's continued commitment to Indian operations reflects the broader confidence international automotive companies have in India's transition to sustainable transportation and its potential as a global manufacturing hub. (ANI)
Reuters
22-05-2025
- Automotive
- Reuters
Valeo ahead of schedule with cost reduction program, CEO says
PARIS, May 22 (Reuters) - French carmaker Valeo Valeo is ahead of schedule with its cost reduction program, which will be rolled out by Summer, Chief Executive Christophe Perillat told shareholders on Thursday. Valeo targets 150 million euros in cost cuts this year and over 300 million euros per year from 2026.
Yahoo
29-04-2025
- Business
- Yahoo
Valeo says 90% of its Mexican products shipped to U.S. now USMCA compliant
By Mathias de Rozario (Reuters) -French car parts supplier Valeo said 90% of the products produced by the group in Mexico and imported into the U.S. are now compliant with the United States-Mexico-Canada-Agreement (USMCA). "Valeo has implemented measures to mitigate the direct impact of tariffs, conducting an exhaustive review of its supply chain in order to do everything it can to reduce the basis for the new tariffs", it said. CEO Christophe Perillat said in call with journalists the company was moving plastic moulds - used to produce car parts - from China to other parts of the world, particularly Mexico or the U.S., to be USMCA compliant. The group added it was seeking agreements to obtain full compensation from customers for tariffs, and had signed deals covering more than 75% of the amounts concerned. Valeo also reported a 2.1% drop in its first-quarter sales to 5.31 billion euros ($6.05 billion), in line with the company-provided consensus. ($1 = 0.8772 euros) Sign in to access your portfolio
Reuters
29-04-2025
- Automotive
- Reuters
Valeo says 90% of its Mexican products shipped to U.S. now USMCA compliant
April 29 (Reuters) - French car parts supplier Valeo ( opens new tab said 90% of the products produced by the group in Mexico and imported into the U.S. are now compliant with the United States-Mexico-Canada-Agreement (USMCA). "Valeo has implemented measures to mitigate the direct impact of tariffs, conducting an exhaustive review of its supply chain in order to do everything it can to reduce the basis for the new tariffs", it said. CEO Christophe Perillat said in call with journalists the company was moving plastic moulds - used to produce car parts - from China to other parts of the world, particularly Mexico or the U.S., to be USMCA compliant. The group added it was seeking agreements to obtain full compensation from customers for tariffs, and had signed deals covering more than 75% of the amounts concerned. Valeo also reported a 2.1% drop in its first-quarter sales to 5.31 billion euros ($6.05 billion), in line with the company-provided consensus. ($1 = 0.8772 euros)
Yahoo
28-02-2025
- Automotive
- Yahoo
Valeo SA (VLEEF) (FY 2024) Earnings Call Highlights: Strong Order Book and Margin Improvements ...
Revenue: EUR21.5 billion. Gross Margin: 19%, improved by 1.1 points. EBITDA Margin: 13.3% of sales. Operating Margin: 4.3% of sales. Net Debt: Reduced by EUR215 million to EUR3.8 billion. Free Cash Flow: EUR481 million after restructuring costs. Net Attributable Income: EUR162 million, 0.8% of sales. New Orders: EUR17.8 billion. R&D Expenses: Reduced by EUR177 million in H2. Administrative Expenses: Reduced by EUR49 million year on year. Dividend Proposal: EUR0.42 per share. Warning! GuruFocus has detected 7 Warning Signs with VLEEF. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Valeo SA (VLEEF) achieved its margin and cash guidance despite a challenging environment, marking the third consecutive year of financial improvement. The company reported a gross margin improvement to 19%, up by 1.1 points, supported by cost-reduction measures and operational control. Valeo SA (VLEEF) reduced its net debt by EUR215 million, leading to a leverage ratio of 1.3 times EBITDA, down from 1.5 times the previous year. The company recorded EUR17.8 billion in new orders, indicating strong competitive positioning and customer trust. Valeo SA (VLEEF) achieved its CO2 emissions guidance and received an A rating from the Carbon Disclosure Project, highlighting its commitment to sustainability. Original equipment sales were down 2% on a like-for-like basis, notably affected by the high-voltage electric powertrain business. China posted an underperformance of 10 points due to a challenging customer mix, impacting overall sales performance. The high-voltage powertrain business negatively impacted group performance by 3 points, underperforming the market. EUR7.3 billion of orders were canceled due to changes in OEM product strategies, particularly in electrification and North America. The net attributable income was EUR162 million, representing only 0.8% of sales, indicating room for profitability improvement. Q: Can you clarify the net debt target for the end of 2025 and the impact of the EUR7.3 billion order cancellations? A: Edouard de Pirey, CFO, confirmed the net debt reduction of EUR215 million and the plan to continue decreasing net debt in 2025, even with a EUR0.42 per share dividend. Christophe Perillat, CEO, explained that the EUR7.3 billion order cancellations were due to changes in customer strategies, particularly in North America. Valeo is seeking compensation for these cancellations, and the order book remains strong despite these changes. Q: What impact did electronic component costs have in 2024, and what is expected for 2025? A: Christophe Perillat, CEO, stated that electronic components, which were previously a challenge, have become a tailwind due to decreasing costs. This trend is expected to continue into 2025, providing further savings. Q: How did working capital impact free cash flow in 2024, and what is expected for 2025? A: Edouard de Pirey, CFO, noted that working capital was a significant tailwind in 2024, with a EUR251 million reduction in inventories. For 2025, while the impact will be lower, further inventory reductions and improved payment terms with suppliers are expected to continue supporting free cash flow. Q: Can you explain the bridge between 2024 and 2025 margins and the impact of potential tariffs? A: Christophe Perillat, CEO, highlighted three main factors supporting margin improvement: restructuring savings, tailwinds from electronic components, and operating leverage. Regarding tariffs, Valeo plans to seek 100% compensation from customers for any additional costs due to tariffs, as the company cannot quickly change its supply chain or footprint. Q: What are the main drivers for the revised 2025 guidance compared to previous expectations? A: Christophe Perillat, CEO, explained that the electrification business has not developed as expected, leading to lower sales projections. Despite this, Valeo is adjusting its cost base to improve profitability. The company plans to release updated KPIs in its next strategic plan, acknowledging the need for more state-of-the-art metrics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
