Valeo, Ichikoh To Form Lighting System Alliance

Autoparts Report, April 25, 2000

France's Valeo SA and Japan's Ichikoh Industries, Ltd. have agreed to set up a global alliance to supply automotive lighting systems and equipment.

As part of the agreement, Valeo will acquire the 20% stake in Ichikoh held by Nissan, and Ichikoh will acquire an option to take up to a 20% stake in Valeo's automotive lighting business.

The agreement covers technical, indus-trial, and commercial collaboration, including the business functions of design, development, production and delivery. A final agreement is expected to be completed before July 1.

The combined presence of Valeo and Ichikoh represents 23 lighting plants worldwide, including 11 in Europe, 4 in North and South America, and 8 in Asia, together with 3 research and develop centers. The number of employees total 10,500. Current combined sales in lighting amount to nearly 2 billion euros ($1.9 billion), with strong growth potential.

This is the third agreement Valeo has signed with Japanese automotive parts suppliers. It follows the setting up of a joint venture with Unisia Jecs--Valeo Unisia Transmissions--and the signing of an agreement with Zexel in December 1999 to supply thermal systems to the Japanese market.

Valeo supplies lighting systems in Europe, North and South America, and China. The alliance with Ichikoh will enable Valeo to gain a foothold in supplying systems to Japanese automakers.

Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks among the world's top automotive suppliers. The Group achieved sales in 1999 of 7.7 billion euros. It has 118 plants, 39 R&D centers, 10 distribution centers and employs 51,700 people in 20 countries worldwide.