Valeo to cut 5,000 jobs worldwide

Special Report:Global Financial Crisis　

PARIS, Dec. 17 (Chinese media) -- France's second biggest auto parts maker Valeo on Wednesday said it will cut 5,000 jobs worldwide in order to deal with the sharp fall in global automobile production.

According to a statement, Valeo has adopted a plan to adjust its workforce to cope with the crisis. It will cut 1,600 jobs in its French plants and another 1,800 in other European countries.

Valeo said the plan had been submitted to the European Works Council. Consultations will be held with employees' representatives.

The global automobile market has been hard hit by the financial crisis with falling automobile sales and worsening economic outlook on consumer confidence. In September this year, new vehicles sales across Europe fell to the lowest level in the last ten years.

Valeo said in the fourth quarter of 2008, automobile production was expected to drop by 30 percent in Western Europe and 38 percent in France. For 2009, Valeo "does not see an improvement in production level" compared with the fourth quarter of 2008, in which the company's production was expected to drop by over 20 percent.

Valeo, which ranks among the world's top auto parts suppliers, has on its customer list such leading French car manufacturers as PSA Peugeot Citroen and Renault. The company employs 54,000 people in 27 countries, including 15,400 in France.