Standing amidst the high-tech displays of the Paris Motor Show, there is a distinct irony in discussing the future of mobility with the leader of a 103-year-old automotive supplier. Yet, Christophe Périllat, CEO of Valeo, remains remarkably composed. His confidence stems from a strategic pivot the company initiated back in 2016, long before the current industry upheaval became mainstream.

The Triple Threat: Energy, AI, and Demographics

Périllat identifies three core forces reshaping the global landscape. First, the recent energy crisis has underscored that power security is no longer a given, fueling the global push toward electrification. Second, the rapid integration of artificial intelligence is accelerating the transition toward autonomous, software-defined vehicles. Finally, Périllat highlights a less discussed but critical challenge: demographic decline. He warns that the era of population-driven economic growth is waning, suggesting that the industry must prepare for a future defined by stagnation rather than traditional expansion.

Elevate 2028: A Roadmap for the Modern Supplier

Valeo’s long-term vision, dubbed Elevate 2028, aims to cement its status as a technology-first entity. By 2028, the company targets revenues between €22 billion and €24 billion, with an operating margin of 6–7%. Périllat describes this as a three-phase engine: steady profit growth, increased cash generation, and a return to sales growth fueled by a robust order book.

  • Strategic Focus: Increasing content per vehicle through advanced power, brain, and lighting systems.
  • Geographic Expansion: Heavy investment in India, China, and the U.S. to capture high-growth, tech-intensive markets.
  • Local-for-Local: Building regional engineering and supply chains to mitigate geopolitical risks.

Beyond Auto: Scaling Innovation

Périllat is spearheading a “Beyond Auto” initiative, applying Valeo’s industrial expertise to sectors like AI infrastructure, battery storage, and humanoid robotics. While the company maintains its commitment to automotive clients, it is leveraging its century of manufacturing scale to provide sovereign solutions in new fields. A key lesson learned is that automotive-grade discipline is not a burden, but a competitive advantage in high-stakes industries like defense and data center cooling.

The Integrator Mindset

On the software front, Valeo rejects the idea of vertical integration for its own sake. Instead, Périllat positions the company as an “integrator” and “simplifier.” While they design and build sophisticated computing units, they remain selective about their role in the supply chain—notably choosing not to manufacture semiconductors. By partnering with top-tier chipmakers, Valeo maintains the flexibility to adapt to rapid technological cycles without the overhead of chip production.

Cultural Transformation

To navigate this transition, Périllat has instilled three foundational values: agility, courage, and a “Standing as One” mentality. As the automotive sector moves toward a future that is electric and intelligent, Valeo is positioning itself not as a legacy supplier clinging to its history, but as a technology innovator ready to define the next century of mobility.