and Textron Automotive Company (TAC) announced the signature of a
memorandum of understanding to create a unique partnership that
leverages the strengths of both companies cost-effectively. The alliance
of two automotive suppliers will create a global powerhouse in cockpit
modules through the setting up of a 50-50 joint venture. The joint
venture will be in operation within the next few months.
the terms of the agreement, Valeo and TAC will combine their sizeable
technological expertise and engineering resources across the Americas,
Europe and Asia, creating genuine global coverage to satisfy customer
needs. The joint company, with facilities in each of the above
continents, aims to become the leader in a cockpit market expected to
reach 10 million units by the year 2004.
companies are totally complementary in terms of product, customer and
geography. TAC is a leader in the field of instrument panels and
automotive interior trim. Valeo is a leader in air conditioning systems,
electronics, switching, and, with the imminent acquisition of Sylea,
electrical architecture. The combined strengths and global reach of the
two groups will enable the new company to offer standalone innovative
cockpit module solutions to customers.
joint company will be led by a worldwide management structure with three
regions : Americas, Europe and Asia. Ultimately, all cockpit programs
would be integrated into this structure. Commenting on the agreement,
André Navarri, Chairman and CEO of Valeo, stated: "The partnership
between Valeo and TAC is a real breakthrough based on a perfect fit in
terms of product and service range and geographical spread. The joint
company will provide real innovations in cockpit systems and modules for
our customers. We already have existing business in this area. We intend
to build on this fast and win new contracts in the near future. I'm
convinced that the new joint company is poised to become a global leader
in cockpit modules".