According to Bloomberg, Valeo, an automotive parts supplier, is looking for buyers for two automotive parts factories and a research center in France amid a general decline in European automobile production.
A Valeo spokesperson stated that the two factories no longer have sufficient business, and the research center requires costly renovations to continue operations. He mentioned that all options are on the table, including selling the three facilities to Chinese buyers. Additionally, he emphasized that the primary goal is to protect employment. Currently, these three facilities employ approximately 1,000 people.
The Valeo factory in L'Isle-d'Abeau, near Lyon, has been restructured to produce systems for electric vehicles, bicycles, scooters, motorcycles, and other vehicles. However, due to new technologies not attracting enough customers, order volumes have declined, according to the Valeo spokesperson.
The spokesperson also indicated that if necessary, Valeo is willing to relocate some R&D work to other sites in the Paris region. On July 15, worker representatives were informed of Valeo's plans. The decision was reported by Agence France-Presse earlier on July 16.
The automotive industry faces pressure from the high costs associated with the transition to electrification, with automakers such as Stellantis, the parent company of the Fiat brand, shifting production and R&D resources to lower-cost countries outside of Western Europe. This situation has exacerbated the difficulties for automotive parts suppliers. The demand for electric vehicles has slowed in major markets such as Germany and Italy due to their high prices and inadequate charging infrastructure, leading some automakers to adjust their electric vehicle plans.
For example, in the first half of this year, Stellantis' automotive production in Italy fell by 36%. Two local Italian unions reported last week that production at the Mirafiori plant in Turin, which assembles the Fiat 500 electric vehicle, plunged 63% in the first half of the year and will be suspended again from July 15 to August 25.
Stellantis CEO Carlos Tavares has publicly urged suppliers to cut costs while relocating their manufacturing bases to lower-cost regions. Volkswagen Group also stated that it might close an Audi electric vehicle plant in Belgium to save costs.
