PARIS – Just three months after assuming the position of CEO at Valeo, Jacques Aschenbroich outlined to shareholders his vision regarding the challenges that the Group must face.

Among them, Aschenbroich said the Group must deal with the technological challenge to develop cleaner and more energy-efficient products that respond to the constraints of global warming, as well as a geographical challenge, as industry growth is expected to be centered around emerging markets. The new CEO also said there will be “societal’ and sector-based challenges to address as well.

"Valeo’s strategy will enable the Group to take up these challenges by building on such strengths as its industrial excellence, its innovation and its presence in high-growth-potential countries. With a more efficient organization and a clear strategic vision, Valeo will be able to return to organic growth and improved profitability," said Aschenbroich.

Aschenbroich made these comments at Valeo’s Combined Annual General Shareholders’ Meeting (AGM) held yesterday under the chairmanship of Pascal Colombani, chairman of Valeo.

The presentation of the Group’s results for 2008 and the first quarter of 2009 provided an opportunity for Aschenbroich to review the situation of the Group against the backdrop of the global automotive crisis. He said the company is fully mobilized to implement its operational efficiency action plans and confirms that it is on schedule with the deployment of a planned headcount adjustment program.

Moreover, the Group says preventive actions the company has taken with regard to General Motors and Chrysler should neutralize any impact these automakers’ bankruptcy filings may have had on Valeo. The Group also confirmed that its financial liquidity situation is sound. The 1.2 billion euros’ worth of bilateral credit lines had not been drawn upon as of June 9, and 866 million euros of these lines have already been renegotiated, with a new covenant based on the net financial debt to EBITDA ratio.