“The storm stock market wiped by Valeo is the winds of ill that blow on the automotive market “

Losses & Profits. But what’s going on there at Valeo, whose ascent industrial and trading was cited as an example ? The automotive supplier has suffered, Friday, October 26, a real storm on the Paris stock Exchange : the day after the publication of objectives for 2018 once again downgraded, its stock market value has shrunk by 21 %, bringing the fall to 62 % since 1 January.

A long time highly valued member of the CAC40, the action fell back to its level in the fall of 2013. And the coming period will be challenging, to Valeo as for its competitor, French, Faurecia, due to a stagnation predictable in the automotive market in 2019-2020.

It is not necessary to look far for the reversal of fortune of the group, which will, however, retain a margin of more than 6 % this year. Very dependent on car sales, it wipes the winds are bad that start to blow on the market.

The “negative phenomena” are many, confided to the World the CEO of Valeo, Jacques Aschenbroich, shortly before the World-Paris : registration more difficult of vehicles in Europe with the new standards for polluting emissions (WLTP) ; regression without precedent in the sales of cars in China (- 5 % in the third quarter) ; trade war launched by Donald Trump penalizing the German manufacturers, major customers of Valeo ; the cost of raw materials ; prospect of Brexit hard.

The model of the supplier-king questioned

Gone are the days where Valeo was a light weight ; it is more than ever exposed to the world market. The forced march, Mr. Aschenbroich has made the world number 9 and one of the leaders in products that are more high-tech thanks to massive investments in its plants and research & development. To the point of presenting at the last show in Paris a “car Valeo” packed with equipment house, then his boss…

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