Valeo has reaffirmed that it will achieve its operating margin target for fiscal 2010 of 6% and says it is looking closely at acquisition opportunities in North America
Speaking at the IAA Motor Show in Frankfurt, Thierry Morin, Valeo’s chief executive, reiterated the group’s financial targets for an operating margin of 6% by 2010, organic growth of over 6% in 2008 and 2009, and enhanced use of its assets. Morin believes that the company is set to profit from global trends in the automotive sector.
New environmental regulations mean that vehicles will need an increasing amount of equipment, the newswire notes.
Morin confirmed the group’s strategic target of refocusing on its three core businesses – comfort enhancement, driving assistance and powertrain efficiency. As part of this strategy, Valeo plans to divest activities amounting to around €2bn (US$2.78bn) in sales by the end of 2008.