France's Valeo Sees Opportunities in U.S. Auto Parts Market as Incumbents Falter

France’s Valeo Sees Opportunities in U.S. Auto Parts Market as Incumbents Falter

Valeo's chief executive Thierry Morin said that the financial problems of American firms such as Visteon Corp. and Delphi Corp. have created new opportunities for the France-based automotive supplier. Morin said that business is moving away from Visteon and Delphi as manufacturers look for more stable partners.

From AFX News Limited

DETROIT — Valeo’s chief executive Thierry Morin said that the financial problems of American firms such as Visteon Corp. and Delphi Corp. have created new opportunities for the France-based automotive supplier.

Morin said that business is moving away from Visteon and Delphi as manufacturers look for more stable partners.

"The whole industry is in disarray. I don’t think it’s any surprise [manufacturers] are looking over to the other suppliers," Morin said.

"It’s not only Visteon and Delphi, several other [North American] suppliers are bankrupt or near bankruptcy," he added.

Delphi, a former General Motors Corp. division, continues to operate under the protection of a bankruptcy judge in New York while Visteon has restructured several times since it was spun off by Ford Motor Co. in 2000.

Another U.S. parts-maker, Dana Corp., filed for bankruptcy protection last year.

In December, Valeo made a bid for Visteon Corp.’s heating and cooling systems plant in Plymouth, MI. The acquisition is contingent on reaching a new agreement with the United Auto Workers Union.

Valeo hopes to reach an agreement with the union and wrap up the deal by the end of the first quarter of 2007, Morin said.

The deal will help Valeo continue its expansion into the North American market, which accounted for about 15 percent of its approximately $13 billion in total revenues in 2005.

Morin also said Valeo has ample capital reserves to move ahead with other acquisitions.