As part of its decision to divest its production activities in Russia, Valeo announced that it has signed an agreement with NPK Avtopribor for the sale of all of its production assets of its powertrain systems business in Russia.
Completion of this transaction is subject to obtaining the necessary regulatory approvals. It will enable the 158 Russian employees in this business to keep their jobs, Valeo said. This sale will be carried out without any capital gain or loss. Valeo will also have a buyback option for 10 years, which can be activated from the sixth year, the company said.
Valeo’s sales in Russia previously represented less than 1% of group sales, and the related assets were depreciated in 2022 for a total amount of 43 million euros (approx. $46 million).
As a technology company and partner to all automakers and new mobility players, Valeo develops products for the automotive industry in the areas of electrification, driving assistance systems, interior experience and lighting. The company said these four areas are vital to the transformation of mobility as well as its growth drivers.
