PARIS – French supplier Valeo said in a statement on January 3 that it has acquired an 80 percent stake in Wuhu Ruby Automotive Lighting Systems Co., Ltd., a previously wholly-owned company under Chery Technology Co., Ltd., itself a subsidiary of Chery Automobile.
Chery Technology will retain a 20 percent stake in the new joint venture, which will be renamed Wuhu Valeo Automotive Lighting Systems Co., Ltd. It will design, manufacture and sell Valeo lighting systems products mainly for Chery on the Chinese market.
“This operation is in line with Valeo’s growth strategy in China and Asia, which represented 25 percent of our original equipment sales in the third quarter of 2011 thanks to the acquisition of Niles, and should reach over 30 percent by 2015, in line with the objectives presented in March 2011,” said Valeo CEO Jacques Aschenbroich.
The business will be integrated within Valeo’s Visibility Systems Business Group. Valeo currently has two lighting systems ventures in China with annual sales revenues of nearly ￥200 million ($31.75 million). Chery is expected to produce and sell nearly 700,000 vehicles in China in 2011, the most among independent brands.