On April 5th, Valeo opened its largest research and development center in central China, the Valeo China Technology Center. This is the first investment project completed by Valeo in China this year. As a Fortune 500 company, this technology center will become an important pillar for Fareo to cultivate innovative technologies in the fields of car lighting technology, comfort, and driving assistance systems, rooted in China and serving the world.

The newly opened Fareo China Technology Center is located in the Wuhan Economic and Technological Development Center, covering an area of approximately 8000 square meters. It has a research and development team of about 450 people and 8 elite experts, mainly consisting of two major parts: the Vehicle Lamp Technology Center and the Comfort and Driving Assistance System Technology Center.

The Fareo China Technology Center - Lamp Technology Center is the largest lamp design and automotive lighting technology development center of Fareo in China, with 8 technical research and development experts and a research and development team of 400 people. Fareo has invested various advanced computer equipment, workstations, service stations, and high-value development software here, establishing a series of optical, electronic, simulation laboratories and sample rooms. After its opening, the center mainly undertakes the mission of integrating the group's innovative technology with the needs of the Chinese market, and developing and designing intelligent lighting technology and products for automobile manufacturers in China. At the same time, the technology center also provides design support for Valeo's projects in major global automotive markets such as the United States, Europe, Japan, Brazil, and India.

The Valeo China Technology Center - Comfort and Driving Assistance System Technology Center will focus on software development for comfort and driving assistance systems. It is an extension of Valeo's Shenzhen Comfort and Driving Assistance Business Unit R&D Center and Global Electronic R&D Center, and will become an important base for the group's Comfort and Driving Assistance Business Unit to attract talents and deeply cultivate the market in China. At present, the technology center has a research and development team of over 40 people, and it is expected to expand to 150 people by the end of 2017.

Jacques Ashenbowa, Chairman and CEO of Fareo Group

Jacques Ashenbowa, Chairman and CEO of Valeo Group, said, "Focusing on emerging markets with high growth potential is one of Valeo's two core development strategies. China, as the world's largest and fastest-growing automotive market, is undoubtedly the top priority for Valeo's future development. We will fully utilize Wuhan's geographical advantages, market environment, industrial heritage, and talent resources, further consolidate the group's global leadership position in the field of headlights and comfort and driving assistance systems, and promote China to become the innovative 'engine' for Valeo to serve the global market, accumulating potential for sustained growth in the future."

In the global automotive market, Valeo is a major supplier of automotive lighting systems, driving assistance systems, in car control systems, and remote information processing systems. In the wave of automation, intelligence, and interconnectivity in the global automotive industry, Valeo maintains a high-speed development pace with innovative technology.

It is understood that in 2016, the total sales of the group reached 16.5 billion euros, an increase of 14% compared to 2015; Among them, the supporting sales revenue of the host factory reached 14.4 billion euros, an increase of 14%, exceeding the global growth rate of the automotive manufacturing industry by 8 percentage points. In addition, driven by strong technological innovation, the group's order volume climbed to 23.6 billion euros, an increase of 17%. In 2016, Valeo Group performed particularly well in China, with the sales of supporting equipment of the main engine factory exceeding 2 billion euros, up 22% year on year, 8 percentage points higher than the average growth rate of the market. The Chinese market contributed 28% of the group's order volume, of which 42% came from local Chinese automakers.

In the future, Fareo Group will continue to strengthen its investment in research and development, and optimize its innovative product matrix. In 2016, the total R&D investment of the group increased by 22%, accounting for over 11% of the supporting sales revenue of the host factory. The innovative technology products developed by the group have won favor in the global market. In 2016, 50% of the group's new orders came from innovative products. This indicates that Fareo has the strength for structural growth and is continuously leading the development of the global automotive manufacturing industry.