French automotive supplier Valeo said on Thursday that even given auto sector uncertainty, it expects to outperform the market in 2020, which it sees down 2 percent, in terms of revenue generation.
Valeo, which specializes in the design, production and sale of components and services for the automotive sector, said its plants located outside Hubei province, which account for 90 percent of nominal sales in China, had resumed production with supply chains progressively getting back in order.
However, it added it was too early to evaluate the impact of the coronavirus outbreak in China on the company’s 2020 results and the wider auto industry. “We respect all the rules implemented by the Chinese authorities”, Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, said on a call organised for journalists.
He pointed out that the coronavirus situation seemed to be improving both in and outside Hubei, with increasing number of people recovering from the disease.
To date, most coronavirus cases have been in Wuhan, the capital of Hunei province, where Valeo operates three sites, including a technology center, which develops parts and components for intelligent vehicles.
The French company reported 2019 sales of 19.48 billion euros, in line with the average estimate of 19.47 billion euros in a Refinitiv poll.