In the second half of the year, Valeo will complete its cost reduction program initiated at the beginning of the economic crisis. 313 million euros of savings have already been generated, with an objective of 500 million euros for 2009 and 600 million euros in a full year starting in 2010.
At the same time, Valeo will devote itself to the implementation of its new organization and the realization of the associated synergies. The Group is also in a position to relaunch its innovation efforts and its investments in emerging markets.
Thanks to these different actions, Valeo intends to adapt its breakeven point to a market stabilized at current levels.
Decisions of the Board on the recommendation of the Nomination, Remuneration and Corporate Governance Committee
After consultation with the "Comite des Sages" and upon recommendation of the Nomination, Remuneration and Corporate Governance Committee, the Board of Directors decided on the conditions in which variable remuneration could be granted to the Chief Executive Officer for the year 2009, as detailed on the company's website.
In addition, as proposed by the Strategic Investment Fund (FSI) and following examination by the Nomination, Remuneration and Corporate Governance Committee, the Board decided to accept the candidacy of Michel de Fabiani for appointment as a Member of the Valeo Board as soon as possible.
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 121 plants, 61 R&D centers, 10 distribution platforms and employs 50,100 people in 27 countries worldwide.
For more information about the Valeo Group and its activities, please visit our web site http://www.valeo.com.
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[1] Net operating cash flow, receipts and disbursements on acquisitions/divestitures of tangible/intangible assets, subsidies
[2] As of January 1, 2009, the presentation of the financial statements has been modified, with customer financing of research and development previously booked as other operating revenues now being mainly reclassified as deductible research and development expenses
[3] Operating income less other income and expenses
[4] Operating margin less amortization
For additional information, please contact: Kate Philipps, Valeo Group Communications Director, Tel.: +33-1-40-55-20-65; Thierry Lacorre, Valeo Group Investor Relations Director, Tel.: +33-1-40-55-37-93
