PARIS (Reuters) – Valeo’s cessation of production of high-voltage motors in Germany due to the slowdown in the electricity market has led to the loss of 300 jobs, a spokeswoman for the equipment manufacturer told Reuters on Friday automobile.
The group, which revised its medium-term objectives downwards on Thursday evening due to a less vigorous automobile and electric market than expected, lost 0.28% to 10.86 euros on the Paris Stock Exchange around 10:00 a.m.
“We are obviously working on our industrial footprint regarding high-voltage powertrains for electric vehicles,” Valeo CEO Christophe Périllat said Thursday evening during a conference call with analysts.
Valeo has stopped production at its Bad Neustadt factory to concentrate on two other electric motor sites, in Poland and Hungary.
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The spokesperson for the equipment manufacturer clarified that only the industrial production part of the German site had been closed, while the Research and development (R&D) activity was still in place.
“The Polish factory has the characteristic of having both high voltage components and low voltage components, which gives you the flexibility to deal with any type of situation,” continued Christophe Périllat.
Valeo’s low-voltage systems are also used to equip gasoline-electric hybrid vehicles.
“The factory we had in Germany was dedicated entirely to electric vehicles, so when EV growth declines, or when a program works or doesn’t work, the consequences on the factory’s activity are immediate,” added the CEO of Valeo.
The group is targeting four billion euros in turnover in high voltage electricity by 2030 thanks to Europe and China, but also by diversifying with new customers in India and North America. .
(Report by Gilles Guillaume, edited by Blandine Hénault)
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