Valeo And Ricardo Sign Agreement To Develop 42 Volt Diesel Vehicle; Up To 30 Percent Greater Fuel Efficiency Expected.

Business Editors

PARIS--(BUSINESS WIRE)--Oct. 1, 2001

Valeo (Paris: FR; OTC: VLEEY) and Ricardo today announced that they have entered a technical and strategic partnership that combines Valeo's advanced 42 Volt electrical energy and thermal management systems with Ricardo's diesel powertrain and vehicle engineering expertise in systems integration and control.

The two companies plan to jointly demonstrate technologies for a 42 Volt mild hybrid diesel vehicle that aims to reduce fuel consumption by up to 30 percent as well as beat future emissions legislation by 50 percent and still maintain excellent standards of performance, drivability and refinement.

Under the terms of the agreement, the jointly developed mild hybrid vehicle, called i-MoGen (Intelligent Motor Generator) will integrate a range of Valeo's 42 Volt systems, including the company's integrated starter-alternator its Heating Ventilation Air Conditioning (HVAC), intelligent engine cooling and other electrical systems. A high output down-sized 1.2 liter diesel engine will constitute the core of the powertrain system together with a supervisory controller to co-ordinate system operation, both developed by Ricardo. Already the first tests show promising results and global customer demonstrations of i-MoGen are planned for 2002.

The Valeo and Ricardo systems will be installed on a "C" category standard production vehicle which is expected to be the practical demonstrator for future mass market powertrain technologies. I-MoGen promises numerous benefits for vehicle manufacturers by addressing the key areas of fuel consumption, emission control and vehicle performance facilitated by 42 Volt technology. Systems integration expertise from both companies will ensure that the final demonstration vehicle is a fully engineered solution with promising practical applications. The i-MoGen vehicle demonstrator is expected to be complete by the end of this year.

With the following targets, i-MoGen is set to revolutionize the small-sized car engine market:

- Fuel economy. Less than 4 liters/100 km

- Exhaust emissions of 50 percent of current Euro IV levels

- Acceleration from 0 to 100 km in 10 seconds

- Production vehicle refinement and drivability

The agreement with Ricardo was signed earlier this year and extensive collaborative research work, including hardware, test and development, have enabled the first visual model to be displayed and explained on Valeo's stand E02 in Hall 8 at the 59th IAA International Motor Show.

"Ricardo's track record in powertrain, vehicle systems integration and control combined with Valeo's established expertise in 42 Volt systems such as the integrated starter-alternator, HVAC and engine cooling systems will add significant systems integration experience for both companies. Moreover, this is a significant advancement for the automotive industry from which our customers and ultimately consumers will benefit," said Thierry Morin, Chairman of Valeo's Management Board.

"Valeo's committed research in 42 Volt technology, and its electrical energy management and thermal systems are an excellent fit with our powertrain systems experience," said, Neville Jackson, Director, Technology Product Group, Ricardo. "Our results so far have reiterated the importance of systems engineering, which is our joint expertise, especially when combining such intricate and advanced systems. Initial discussions with vehicle manufacturers to describe the vehicle concept have been met with enthusiasm."

Each individual system offers a number of benefits which, when combined into one fully integrated demonstration system, offers a net benefit which is greater than the sum of the individual parts.

The combination of Valeo and Ricardo systems is unique because it interfaces with nearly every generic engineering aspect of the vehicle. In addition to the exhaustive and applied engineering expertise in the powertrain and advanced electronics and interior systems area, the chassis system is also included. This makes the partnership unique in its jointly accumulated knowledge base and outstanding in its numerous systems synergy benefits.

In addition to fulfilling ambitious targets, each Valeo system is also expected to bring several other relevant advantages to the project. The combination of Ricardo and Valeo systems gives rise to new and promising interactions that could make the joint development a basis upon which future advanced vehicle systems will be based.

Ricardo is one of the world's foremost independent automotive engineering consultancies with technical centers in the UK, USA, Germany and Czech Republic and is a leading technology provider of research, design and development services for the world's automotive manufacturers. The company employs 1,400 people, 70 per cent of them highly qualified graduate engineers and technicians, and its client list includes all the world's major vehicle OEMs. Ricardo is a constituent of the FTSE techMark 100.

Valeo is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks and ranks among the world's top automotive suppliers. The Group has 162 plants, 49 R&D centers, 10 distribution centers and employs over 75,000 people in 25 countries worldwide.

Illustrations can be downloaded from the Valeo Internet site, www.valeo.com, which features a special section on Valeo's participation in the IAA International Motor Show 2001.

For more information on the Group and its businesses, please consult our Web site: www.valeo.com