Automobile: “Valeo will pass 100 % of inflation to its manufacturers’ customers”

In an interview with the “world”, Christophe Périllat explains the strategy of the French equipment supplier, specialist in electric propulsion, of which he is the managing director.


Named on January 26 at the head of Valeo, tenth world automotive equipment supplier (and second French after Faurecia), Christophe Périllat confirmed, in his strategic plan revealed at the end of February, his desire to accelerate the company’s switch to The electric, autonomous and connected car. He explains to the world what this new automotive universe, made of electrification, digitization and inflation implies for his business.

You have spent, in recent years, a lot of money and resources for Top Valeo in the future car. To the point that the financial markets doubted this strategy. Was it not too fast and too risky?

First, know that we release enough cash to self -finance this transformation. It is true that we had to do a double work during the years 2018-2019: investing in the technologies of the future, while continuing to assume the development costs of thermal vehicles. But this effort is mainly behind us: on components such as on -board chargers, we are at the fourth generation of products. We are therefore ahead of our competitors and our objectives.

In high-voltage electric propulsion, that is to say in the activities of the Valeo Siemens joint venture that we acquired on July 4, we have in June exceeded six billions in advance euros of orders accumulated in 2021-2022, and one of three electrified cars worldwide is equipped by Valeo. In terms of driving aid, we recently concluded major partnerships with Stellantis and BMW.

For Valeo, all of this is a real growth potential, and even hypercroissance. In the electric propulsion part, we will sell content that is six to eight times more value than what the heat engine can generate. In the cooling-climatization part, it’s three times more. In total, our plan provides that we will go from 17 billion euros in turnover in 2021 to 27.5 billion in 2025, with an ambition at 40 billion in 2030. to shortages, in particular that of semiconductors, as well as the shock of inflation on the price of materials and energy. Isn’t that going to complicate your negotiations with the manufacturers?

Indeed, this subject of price increases is the subject of tight discussions with our customers, but we will pass 100 % from inflation to manufacturers. We will do it because we have no other choice. If we put 1 kg of material in a room, we cannot charge 700 grams, or it will not last long. This fact, our customers accept it and they will accept it.

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/Media reports.