France's auto parts supplier Valeo to cut 5,000 jobs

PARIS: French auto parts maker Valeo said on Wednesday it would cut around 5,000 jobs worldwide, including 1,600 in France, in response to the slump in global car sales.

Valeo, which employs a total of 54,000 people, said in a statement it was adopting a "plan to adapt its head-count in order to deal with the sharp drop in automobile production."

The company said fourth quarter production was expected to drop by over 20 percent, and that it expected no improvement in 2009.

"Given this situation, and despite the measures already implemented by the Group, Valeo must reduce its permanent head-count in order to maintain its competitiveness," it said.

"A reduction in headcount of around 5,000 employees is planned worldwide, including around 1,600 in France and 1,800 in other European countries," with priority given to voluntary departures, it said.

Valeo said it had transmitted the plan to the European Works Council and would launch consultations with staff representatives.