PARIS — Valeo and Michelin have signed a letter of intent to coordinate the development of electric and rechargeable hybrid vehicle systems such as the drive train, engine and battery cooling management, climate control, lighting, energy management and tires.

The two companies said the collaboration demonstrates their willingness to participate in the "Automotive Pact" currently being encouraged by the French Government.

Valeo is an expert in electrical systems, engine management and climate control, and was a key supplier of the drive train for more than 10,000 first generation electric vehicles developed by PSA Peugeot Citroen and Renault. Michelin, in addition to its range of tires and wheel assemblies, will contribute its know-how in the domain of Active Wheel and associated technologies. The technological developments of both partners are complementary in terms of products and expertise.

Michelin and Valeo said they are convinced that by joining forces they will help to accelerate the emergence of electric vehicles in France and worldwide.