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January 12 2002 - Valeo, the French-based automotive supplier has transmitted proposals for a reduction in employment levels to its European Works Council Bureau. Employee representatives will be consulted on:

• ongoing industrial rationalization
• the 'adaptation' of employment levels in line with automotive industry activity
• the ongoing divestiture of non-core activities begun in 2001
• a resulting reduction in the permanent workforce of about 5,000 people out of a total of 70,000 in its 143 production sites

The main consequences for European workers are:

• Gradual disengagement from wiring manufacturing in France through a program for the 'Management of Anticipated Employment Levels' affecting 1,370 people. This sites involved are the Cablea operation at Dreux (Eure et Loire) and the Sylea sites of Sissonne (Aisne), Bellegarde (Loiret) and La Bastide (Tarn et Garonne).
• Transfer of passenger car engine cooling activities of Mjallby (Sweden) to three other facilities in Poland, France and Spain, affecting 200 of the present 600 Swedish employees.
• Closure of the Mariglianella automotive wiring harness site in Naples, Italy affecting 154 people.

In order to align employment levels to the drop in automotive production, Valeo intends to cut back on temporary workers, and reduce the number of its permanent employees in Europe by around 700.

Non-core activities continues will continue to be divested, specifically a project concerning Plastic Injection at St Aubin (France) - 70 people, and Felizzano (Italy) - 59 people affected.

Valeo says it will "maximize its efforts to find alternative jobs for the employees of the sites affected, through internal and external redeployment initiatives in order to avoid outright redundancies."

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