Valeo in China · 2019. 5. 14. · 2007 Localization VALEO Products D7R Mar. 2005 Localization...

Property of Valeo. Duplication prohibited

1

Valeo in China

Edouard de PireyValeo China President

Valeo Strategy

CO2 emissions reductionand intuitive driving

Property of Valeo. Duplication prohibited2

Development in Asia and emerging countries

OEM sales produced in Asia & emerging countries at 54%

50%*

2011

2013

54%*

Eastern Europe &

Africa14% Western

Europe37%


3*Share of Valeo total OEM production made In Asia & emerging countries

37%*

2007

US9% Mexico

9%

SA4%

Asia27%

37%

2014

Eastern Europe &

Africa14%

Western

Eastern Europe &

Africa 14%

2013

Western

OEM sales by production regionSales including joint-ventures consolidated proportionally

Geographic repositioning


4

US10%Mexico

10%

SA 3%

China13%

Asia excl. China14%

WesternEurope

36%54% in Asia& emergingcountries

US9%Mexico

9%

SA5%

China 12%

Asia excl. China14%54% in Asia

& emergingcountries

WesternEurope

37%

YTD end-September

Europe**OEM sales*** +9.6%

Production****+3.6%

Asia** excl. China

North AmericaOEM sales*** +6.4%

Production**** +2.8% 51% of Valeo sales(1)

20% of Valeo sales(1)

Outperf.+3.6pts*

Outperf.+6.0pts*

Outperf.+7.8pts*

WorldOEM sales*** +10.3%

Production****+3.6%

Outperf.+6.7pts*H1

H1 2014: OEM sales outpaced the global market by near 7 pts, in line with 2013


5

Asia** excl. ChinaOEM sales*** +9.7%

Production****+1.9%

South AmericaOEM sales*** -13.3%

Production****-17.4%



Outperf.+4.1pts*

* Like-for-like** Europe including Africa;

Asia including Middle East*** Valeo OEM sales by destination****LMC estimates – light vehicle production(1) Sales including joint-ventures consolidated proportionally


Outperf.+24.7pts*

ChinaOEM sales*** +35.5%

Production****+10.8%

Europe*OEM sales** +8.9%

Production***-0.2%

Asia* excl. China

North AmericaOEM sales** +4.2%

Production*** +3.8% 49% of Valeo sales

22% of Valeo sales

Outperf.+0.4pts

Outperf.+9.1pts

Outperf.+5.3pts

WorldOEM sales** +7.7%

Production***+0.7%

Outperf.+7.0ptsQ3

Q3 2014: OEM sales outpaced the global market by 7 pointsOutperformance in China of more than 20 points

Like-for-like proforma 2014


6

Asia* excl. ChinaOEM sales** +5.1%

Production***-0.2%

South AmericaOEM sales** -21.7%

Production***-19.5%

13% of Valeo sales

3% of Valeo sales

Underperf.-2.2pts

13% of Valeo sales

Outperf.+20.4pts

ChinaOEM sales** +25.4%

Production***+5.0%

* Europe including Africa; Asia including Middle East

** Valeo OEM sales by destination***LMC estimates – light vehicle production

Balanced customer portfolio

French* 17%

Other5%

French*18%

Other 6%

% of OEM salesSales including joint-ventures consolidated proportionally

German30%

German30%


7

* Excluding Nissan** Including Nissan

Asian**26%

American22%

H1 2014

Asian** 29%

American 20%

H1 2013

Asian**26%

Asian**26%

SA5%

Asia excl. China13%China

NA19%

SA5%Asia excl.

China13%

NA22%

China and North America fueling future organic growth

% of 2013 order intake*

Asia37%**

% of 2013 OEM sales*

Asia26%


8

13%China13%

Europe 50%

China24%

Europe36%

Order intake**: €14.8bn(of which Asia**: €5.5bn)

* By destination ** Excluding Access Mechanisms business

26%

OEM sales: €10.3bn

SA3% Asia

excl. China13%

China

NA

SA2%

Asia excl. China14%

NA

% of H1 2014 order intake*

Asia41%

% of H1 2014 OEM sales*

Asia26%€1.1bn

€1.6bn20%

17%

Asia fueling future organic growth, Acceleration in China


9*OEM sales and order intake by destination including joint-ventures consolidated proportionally

China13%

EuropeChina27%Europe

Order intake: €9.1bnOEM sales: €5.4bn

€2.8bn€3.6bn

51%40%


10


11


12

Growth in China as part of Valeo global strategy

Absolute numbers in China

RMB 12bn Sales*

15,000

At Group level (H1 2014)

27% of order intake


15,000 employees**

26 sites**10 development

centers** 13% of sales

intake

China is already Valeo’s No.1 country in number of employeesChina is already Valeo’s No.1 country in number of employees*in 2013** as of today

Valeo is a worldwide leader as well as a Chinese leader in all its businesses

Thermal Systems

Comfort & Driving AssistanceSystems

Incl. Driving AssistanceSystems


Transmission

Electrical Systems

Wipers

Lighting

Systems

Valeo in China

26262626 PlantsPlantsPlantsPlants

10101010 Development CentersDevelopment CentersDevelopment CentersDevelopment Centers


15

15,000

3333 Research CentersResearch CentersResearch CentersResearch Centers

15,00015,00015,00015,000 PeoplePeoplePeoplePeople

2013GuangzhouChongqing

2014WuhanBeijing

2015Changchun

Customer Offices

Foton

Shanghai

Beijing

Changchun

Baoding


ChangchunShanghaiHangzhouBaodingWuhu

GAC

Chongqing

WuhanWuhu

Guangzhou

Hangzhou

Chinese OEMs represent <20% of Valeo sales in China today, but ~30% of Valeo’s order intake in China

Chinese OEMs represent <20% of Valeo sales in China today, but ~30% of Valeo’s order intake in China

We are growing faster than the market

30%

38%

55%

35% 36%

30%

40%

50%

60% Valeo OEM sales growth* Automotive production**


17

20%

5%

20%24% 24% 25%

0%

13%

8%

4%

13%

12%8%

21%

9%12%

5%

0%

10%

20%

30%

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

*OEM sales by destination like-for-like** LMC estimates – light vehicle production

Strong growth ahead

Underperformance

15pts Valeo OEM Sales*+34% CAGR

Outperformance

17pts

Outperformance

17pts

Double our salesevery four yearsDouble our salesevery four years


18

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Valeo OEM Sales*+9% CAGR

Production**+24% CAGR

Production**+17% CAGR

*OEM sales by destination like-for-like** LMC estimates – light vehicle production

Continuous increase in the order intake

20%

25%

30%

3

4

53.3 2.8 2.62.12.7

Wei

ghtin

g of

Chi

na in

Gro

up O

rder

Inta

keOrder intake ratio 3.0


19

0.8 1.3

2.7 2.9 3.5

0%

5%

10%

15%

0

1

2

2009 2010 2011 2012 2013 H1 2014

Wei

ghtin

g of

Chi

na in

Gro

up O

rder

Inta

ke

H1 2.1€bn

Order intakeIn €bn

H1 1.5€bn

H1 2.4€bn

Aftermarket: the next wave of growth

6.0

8.0

5

6

7

8

9

100

120

140

160Millions Years

Car park shifting from fleet market to private owners

Chinese car park > USA car park by 2020

Vast majority of first time buyers

No habit of regular maintenance

Trust in OES workshop expertise20% CAGR


4 14

46

96

142

1.2 1.8

3.4

0

1

2

3

4

5

0

20

40

60

80

2000 2005 2010 2015 2020Chinese car park Average age of the car park

Source: POLK

Trust in OES workshop expertise

50% of current car park will exit warranty period in the next 3 years

Maintenance parts consumption to rise

Valeo Aftermarket sales growth higher than the car park growthValeo Aftermarket sales growth higher than the car park growth

Managing growth, optimizing Capex

20134 new sites3 extensions

20144 new sites Changchun

Example: Thermal industrial strategyConcentrating component plants

Jingzhou for heat exchangers for HVACChangchun for variable piston compressorsLoudi for fixed piston compressorsFoshan for radiators

Assembly plants close to customersShashi


4 new sites

2015 & onwards4+ additional projects

Loudi

Foshan/Huadu

Shashi

Nanjing

Chengdu

Tianjin

Yantai

ShashiTianjinHuaduNanjingYantaiChangchun

Valeo China’s Commitment

Four Steps Approach

Serve its traditional international customers

Develop business with Chinese car makers

1994

-


Be Chinese in China

Develop products for the Chinese market in China

Develop technologies from China2014

Innovation for China

CO2 emission reduction

Stop-start

PHEV solutions

Water Charge Air Cooler

Etc


Etc

Intuitive driving

Advanced HMI

Automatic driving

Valeo innovation strategy fitted to the Chinese mar ketValeo innovation strategy fitted to the Chinese mar ket

Footprint of Valeo’s China Technical Centers

~2,000 development staff

Wuhan LightingNanjing Transmission

ChangchunThermal


24

3 Research Centers

10 Development Centers

Shashi Thermal

Shenzhen CDA

Shanghai Wiper/THS

Nanjing Transmission

Shanghai Electrical

Wuxi CDA

Shanghai Wiper

FoshanShenzhen PTS

Managing growth with the best teams

Retain


25

Hire

TrainRetain<9% turnover,4-5 pts betterthan the market

Incl. Expertdevelopment

BenchmarkBenchmark

Efficiency program delivering results

A comprehensive toolbox

Benchmark

Kaizen activities

Automation


Automation

Etc Simple automationSimple automation

Longer term programsLonger term programs

Increase productivity to offset labor cost increase in the years to come

Increase productivity to offset labor cost increase in the years to come

Valeo committed to China

Strong commitment of Valeo to China

All technologies available, all Valeo tools implemented incl. 5 Axes, Mother-Daughter, etc.

Full localization and continuous support of global organization

R&D and projects localized: “Invented with China”

Support all OEMs, international OEMs as well as Chinese OEMs

Strong commitment of teams, “Be Chinese in China”


Strong commitment of teams, “Be Chinese in China”

15,000 people, comprehensive career path offers, Top employer

2,000 development staff, local teams and international experts

Turnover under control

A winning strategy

Sales to double every 4 years in the future, as was the case in the past

Valeo China becoming Valeo’s No.1 country


28


29


30

Shanghai Valeo overview

YI PinghuaSenior Site General Manager

Powertrain Systems Business GroupFour Product Groups

Electrical Systems PES

Alternators

Re-Starters / Stop&Start

Starters

Transmission Systems PTR

Manual Transmissions

Friction Materials

Hydraulic ClutchActuation

Combustion EnginePCE

Air Charging Systems

Mechanical Actuators

Powertrain Sensors

ElectronicsPEL

Medium Power Electronics

High Power Electronics （HEVs & Evs)


Electric Motors

Belt Starter Generator

Stop&Start

Automatic Transmissions

Powershift Transmissions

Friction Materials

EMS ECUs

Ignition & InjectionEnergy Conversion

System Engineering & Transversal Innovation

-CO2 Emission Reduction -Pollutants Emission Reduction -Hybrid and Electric

Valeo Alternators

Rotor w or w/o magnets

Stator 2 x 3 phases 12 diodes rectifier bridge


32

Valeo Re-Starters

Magnets Magnets

Solenoid switch

Rear part

Field system


Wound Wound fieldfield

ArmatureReduction gear

i-Stars: Starter Alternator Reversible System

Control modulePower module


34

Rear coverHeat sink

Brush holder

InterconnectorRotorStator

Shanghai PES key facts

#1 in China, >25% market share


Sharehoding: 50% Valeo/50% Huayu (SAIC Group)

2,000 employees

>10m machines manufactured in 2013

Valeo’s biggest plant worldwideValeo’s biggest plant worldwide

Shanghai PES history

� 2014 Decision to localize Mild Hybrid Belt Starter Generator i-BSG 48V

� 2013New Plant in Pudong JinqiaoLocalization RSM14, NRG11

� 2012 Localization ESW22, ESW24

� 2011 Localization FGt, Mechatronics, ESM14, FS18, FG20+, FG23

� 2009 Localization VALEO Products FG


� 2007 Localization VALEO Products D7R

� Mar. 2005 Localization VALEO Products TG/TS

� Dec. 2003 VALEO increased share to 50%

� Aug. 2001 Localization VALEO Products SG

� Mar. 1998 New Plant in Pudong Zhangjiang Hi-Tech Park

� Jan. 1997 Localization VALEO Products VI/D6RA

� Feb. 1995 Setup of JV

A broad and comprehensive customer base

Beijing

Changchun

Harbin

Shenyang

Baoding

Tianjin

Yantai

Dong’An / Hafei

FVW / FAW

FAW-Daihatsu

SGM Dongyue

Weifang Diesel

FAW Xiali

Jilin

Brilliance / SGM Beisheng

DPCA / Dongfeng Nissan

Greatwall

BHMC / Daimler / Beijing Power /

Beiqi Foton


37

Shanghai

Shenzhen

Hainan

Changsha

Chongqing Wuhan

Xian

Nanchang

Liuzhou

Hangzhou

Anhui

Yancheng

SVW / SGM / Sh. Diesel / SMC / Volvo

WeifangKIA

Geely

JMC

JAC / Chery

Haima

BYD / CA-PSASGMWL

BYD

Chang’An Grp / Chang’An Ford / Dongfeng Xiaokang

BYD

Taiwan CMC

Toyota / GAC

Guangzhou

QorosChangshu

Strong growth of Valeo Shanghai

Sales x5 since 2005


2005 2006 2007 2008 2009 2010 2011 2012 2013

New Valeo Shanghai facilities

In sqmOld plant

(Zhangjiang)New plant (Jinqiao)

Increase

Site ground area 28,914 77,813 269%

Constructive area 17,685 53,023 300%


39

Constructive area 17,685 53,023 300%

Industrial surface 12,724 37,005 291%

Offices & other 4,151 12,917 311%

R&D laboratory 810 3,101 383%

Why is hybridization a must ? (1/2)

Market context –Regulatory impact analysis

per

kilo

met

er n

orm

aliz

ed to

N

ew E

urop

ean

Driv

ing

Cyc

le (

NE

DC

)

150

170

190

210

230

250

270 United StatesUnited States

ChinaChina

EuropeEurope


40

• Demanding emission regulations• Climate/air quality (especially in China)• End-user benefit

• Demanding emission regulations• Climate/air quality (especially in China)• End-user benefit

Gra

ms

CO

2pe

r ki

lom

eter

nor

mal

ized

to

New

Eur

opea

n D

rivin

g C

ycle

(N

ED

C)

2000 2005 2010 2015 2020 202590

110

130

150

US 2025: 109China 2020: 117

EU 2021: 95

JapanJapan

Japan 2020: 105

Why is hybridization a must ? (2/2)

Today:

We are wasting “free Energy” We need a lot of Energy

Today:

We are wasting “free Energy” We need a lot of Energy


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Thanks to electrification, Hybrid cars will:

• recover energy when it is “free”

• restitute it when necessary (start, boost, drive, s ailing, etc.)

Which improves efficiency and reduces CO 2 consumption

Thanks to electrification, Hybrid cars will:

• recover energy when it is “free”

• restitute it when necessary (start, boost, drive, s ailing, etc.)

Which improves efficiency and reduces CO 2 consumption

Internal CombustionEngine

Source: 2013 Valeo Powertrain Forecast

Stop-Start massive application

Electrification forecast: China


42

Emergence ofStop-Start

application

Stop-Start

Diversity of technologies– higher FULL / PHEV growth

MILDFULL

PHEV PHEV

Valeo Innovation Roadmap

Belt-driven starter-generators i-StARSStarters and

alternators

Belt Starter Generator up to 15kW for mild hybrids

Conventional Systems

Mild/Full Hybrids

High efficiency alternator


Crankshaft motor generatorup to 70kW for full hybrids and

range extender generators

Micro Hybrids

Reinforced starters: ReStartwith or without Reflex Start

Valeo Concept on Democar

E-Machine 8-12 kW@ 48V

EDLC24 x 5000F

208 kJ

Supervisor

Produced by Valeo


Stand Alone Inverter 15

kW 48V

DC/DC Converter 2 kW 60V / 12V unidirectional

208 kJ

Up to 13% fuel consumption savingsUp to 13% fuel consumption savings

Valeo Range Extender for a German premium car

Petrol electrical generating set

Series hybrid: petrol engine used to generate electricity

To extend range up to 240-340km (vs 130-160km)

Able to provide energy for driving even with empty battery

SOP Sept 2013 in Valeo Poland


SOP Sept 2013 in Valeo Poland

28Kw Machine direct coupling with engine crankshaft

Water cooled with max: 120°C air/80°C coolant

Voltage range/Eff.: 200-450V/93%

Valeo has been in production since 2013Valeo has been in production since 2013

Total Quality Approach5 Axes Method

Verification Communication

Detection

QRQCHigh Tech Validation Labs 10 Tools

QRQC (All)

5S

Work Instructions/Operator Certification

Zero Rework

Stop Scrap


46

…for Customer Satisfaction

Analysis

Verification Communication

…for Continuous Improvement

…for Best Product Design

… as Conditions to Produce Quality

Stop Scrap

Change Control (CI 3.9) (4M Matrix)

SPPC - Manufacturing / Project

Launch Control (FDPR)

Standardization Committee / Technical Committee

PFMEA check on Genba

Recognized by our customers


47

S/T lines ALT lines

Raw

materials

Unloading

Plant layout


ALT lines

Raw

materials

Finished Goods

Loading


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Valeo in China · 2019. 5. 14. · 2007 Localization VALEO Products D7R Mar. 2005 Localization...

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