Automatic parking: Valeo launches specialized consortium Ven.ai – 05/01/2023 at 10:24 am

(AOF) – Valeo announces the creation of the Ven.ai consortium, set to become the benchmark for production-ready automated parking solutions that can be deployed on a global scale. To do this, the French automotive supplier is joining forces with Japanese IT services group NTT Data and Swiss company Embotech, which specializes in software for autonomous driving systems.

Ven.ai’s infrastructure-based solution requires very little equipment on vehicles, guiding them to a specific parking space using sensors, connectivity (5G) and on-board computing. The automatic parking solutions can be implemented in particular at the automakers where the vehicles are produced, in the logistics parks downstream of the distribution, in the warehouses of the vehicle fleet operators, in the commercial areas, as well as in the car parks, for the purpose of automated valet parking.

In its initial phase, the consortium will focus on production-related use cases to help automakers increase the efficiency of their assembly lines by automatically guiding vehicles from one production station to another. The assembly line thus gains in efficiency, which saves time and costs.

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key points

– “Tier 1” automotive supplier, world leader in electrification and driving assistance;

– Activity of 17.4 billion euros, divided into 4 divisions – visibility, propulsion, combustion and comfort & driving assistance, with the original equipment activity contributing with 84% of sales;

– Strong exposure to Asia (34% of original equipment sales including China, market leader with 16%), behind Europe and Africa (45%) but ahead of the Americas (21%);

– Business model taking advantage of trends in the automotive market: electrification, ADAS acceleration and reinvention of life on board (comfort and driving assistance) and lighting;

– Open capital with strong shareholders (5.13% for BPI and 5.16% for the Harris fund), Jacques Aschenbroich chairing the 14-member board of directors, with Christophe Périllat managing director;

– Clean balance sheet – €3.3 billion in net debt, i.e. 89% of shareholders’ equity – and financial visibility – €4.9 billion in cash.

challenges

– Strategy 2022-25 “Move up”:

– average annual overrun of original equipment sales of more than 5 points,

– operating margin of 14.5%,

– free cash flow generation of $800 to & billion,

– divestments of non-core assets of €500 million during the term of the plan;

– Innovation strategy on 2 axes, industrial organization and offer of ecological and safe solutions, innovation bringing 65% of incoming orders:

– dynamic R&D policy for the 3rd French patent agent and 1st French in the world (9.9% of sales), with a portfolio of almost 35,000 patents and 5,000 software engineers, including 200 in artificial intelligence,

– global open innovation with start-up incubations and academic partnerships,

– industrial partnerships (Safran, Total, Stellantis, etc.) and pure research, for Valeo.ai;

– “CAP 50” environmental strategy aiming at carbon neutrality by 2050:

– Plan “CAP 50” for carbon neutrality in 2050, with, for 2030: – 75% for emissions linked to operational activities, – 15% for those linked to supply and – 15%, for those linked to the use of final products ;

– 2/3 of original equipment sales integrating products that limit their impact,

– circular economy integrated into production,

– launch of a green loan;

– Strong ambitions for Valeo Siemens eAutomotive, specialized in high voltage electrification and now integrated into the group (8%, then 12% operating margin in 2022 and 2024 and €2.9 billion in order intake);

– Spin-offs of the joint venture with the Korean company Kapec, destined to be the world leader in torque converters (gearboxes) with 21% of the market;

– Division of production systems boosted by the full integration of high voltage electrical activity;

– Order intake of 13.1 billion euros at the end of June -1.7 times original equipment sales-, driven by ADAS and electrification.

challenges

– Reaction to the net loss in the 1st half due to weak market growth, inflation of raw materials, shortages of electronic components and electrical harnesses;

– Slowdown in the growth of replacement business;

– Visibility Systems segment affected by an unfavorable product mix in China and North America;

– After a 33% increase in sales in the 3rd quarter, confirmation of the targets for 2022: sales of €19.2 to €20 billion, operating margin of 3.2 to 3.7% and negative free cash flow of € 320 million.

Negotiations with builders

On average, equipment manufacturers represent between 60 and 85% of the cost of manufacturing a vehicle. According to the Federation of Vehicle Equipment Industries (Fiev), negotiations with manufacturers are very tense regarding the transfer of increased costs. The price increases concern both electronic components, raw materials such as steel, nickel, lithium or palladium, energy and transport. Equipment manufacturers negotiate mainly with Stellantis and Renault to set up indexes to pass on increases. They are also committed to innovation, differentiation, modernization and internationalization.

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