Valeo SE

XMUN:VSA

Business Description

Sector

Consumer Discretionary

Industry

Auto Components

Headquarters

France FR

Employees

87 115

IPO date

Jul 16, 2013

Valeo SE is a French automotive supplier that designs and makes parts and systems used in cars, trucks, and other vehicles. Its main products include driver-assistance sensors and software, lighting systems, thermal management parts such as cooling and air-conditioning components, and powertrain hardware for electrified vehicles. It also sells replacement parts for the repair market.

Its main customers are carmakers, truck makers, and auto parts distributors. Valeo makes money by engineering these systems, manufacturing them to the customer’s design or its own design, and selling them either to vehicle builders for new vehicles or to wholesalers and repair channels for service parts. Because many of its products are built into a vehicle before it reaches the road, it is tied closely to the production schedules and technology needs of automakers.

Valeo sits in the middle of the auto value chain as a Tier 1 supplier, meaning it provides complete components and systems rather than raw materials. That makes its business different from a simple parts maker: it has to combine hardware, electronics, software, and manufacturing know-how to meet strict safety, efficiency, and packaging requirements. Its role is especially important as cars add more sensors, electrification, and electronic content.