Valeo Shifts Focus to Google Cloud AI to Enhance Productivity and Innovation

French car parts manufacturer Valeo announced on Thursday its plans to intensify its utilization of Google Cloud AI tools, signaling a pivotal move towards advanced technology within the automotive sector.
Google Cloud businessValeo disclosed its intention to integrate Google Cloud’s AI solutions into various aspects of its operations, including software development, vehicle design, and customer service. The initiative underscores Valeo’s commitment to leveraging artificial intelligence to enhance productivity and innovation.

Geoffrey Bouquot, Chief Technology Officer at Valeo, emphasized the significance of the partnership, stating, “Together, we will play an essential role in how we make generative AI as relevant, secure, and productive as possible to support Valeo’s growth.”

This announcement comes in the wake of Valeo’s downward revision of its net sales forecast for 2025, citing sluggish growth in the automotive market, particularly in the electric vehicle segment. Valeo, along with other European auto suppliers like Forvia and Continental, faces the challenge of aligning cost reductions with evolving market dynamics, including the slower-than-anticipated adoption of EVs.

The revised sales guidance anticipates a range of 24.5 billion to 25.5 billion euros ($26.49 billion-$27.57 billion) for 2025, down from the previous estimate of approximately 27.5 billion euros.

CEO Christophe Perillat acknowledged the shifting market landscape, stating, “We built the Move-Up strategic plan on the basis of a market that was expected to grow to 98.5 million cars by 2025. The market has changed.”

Despite these challenges, Valeo reported full-year net sales of 22.04 billion euros in 2023. However, the company faced temporary production disruptions in its Systems Business Group due to inventory drawdowns and fluctuations in demand for European electric vehicle platforms, Reuters news report said.

Valeo’s strategic alliance with Google Cloud reflects its commitment to harnessing AI technologies to navigate the evolving automotive landscape while addressing challenges and capitalizing on emerging opportunities.

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