(Photo by Manel on Flickr)
Two of France’s automotive forces, Valeo and Michelin, have taken the first step to bringing hybrid and all-electric vehicles to millions of drivers by signing a letter of intent last week. The details of this partnership still need to be worked out but Valeo will provide the drivetrain technology while Michelin will produce its Active Wheel technology in larger numbers. The aim of the letter of intent is to clear a path for greener vehicles with functioning emissions control devices, battery cooling and clean-running engines.
Valeo’s production facilities cover a vast expanse of automotive technology from electrical systems to engine management systems. The company has already worked with PSA Peugeot Citroen and Renault to produce 10,000 hybrid and electric vehicles in the French auto market. Michelin’s Active Wheel technology uses two motors within each unit to propel the vehicle while maintaining safe handling on bumpy roads. Both companies hope to follow the Automotive Pact laid out by Nicolas Sarkozy and the French government with this collaboration. The Automotive Pact is designed to bring French parts companies, research labs and automakers together for homegrown solutions to transportation problems.
The letter of intent between Valeo and Michelin may be moot if the global economy worsens over the next year. Michelin plans to cut 45% of its investments and Valeo is cutting 33% of its investment portfolio in 2009 according to The Financial Times. The shrinking investments of France’s two leading parts companies portend problems with high-cost projects like Michelin’s Active Wheel. While Valeo and Michelin look good pushing for greener vehicles amidst financial ruin, nothing is set in stone to this point.
Another obstacle for Valeo and Michelin is that a domestic automaker has not stepped forward to facilitate this project. Valeo’s past work with PSA Peugeot and Citroen, Renault and other automakers does not guarantee that these companies will be willing to make heavy investments in green-vehicle projects. We will need to see how this story plays out over the next few months but the best scenario in the context of the current market is that the project is merely delayed. If French automakers do not step forward by the time spring is out, the promise of a Francocentric Automotive Pact and the Valeo/Michelin axis may be for naught.
