French car part makers climb amid easing chip supply tensions at Nexperia

Valeo SE

03/11/2025 10:11

** Shares of French car parts makers Forvia FRVIA.PA, Valeo VLOF.PA and OPMobility OPM.PA rise 5%, 2.3% and 1.3%, respectively, on the prospect of easing tensions related to Nexperia's chip shipments

** Nexperia said on Sunday it welcomed recent statements by the U.S. and Chinese governments removing barriers to the company shipping its chips from China

 ** Its China unit also said it had "sufficient inventories of finished goods and work-in-progress" after its parent halted wafer supplies

** "What this will do is reduce the tension a bit," TP ICAP Midcap analyst Julien Thomas says, but notes this tension would not have been "super strong" regardless

** Thomas says that while he sees Valeo being more exposed to Nexperia, Forvia's shares are rising more is due to the company's comments when it reported Q3 results

** Forvia last month confirmed its 2025 guidance but said it was subject to supply conditions, particularly from Nexperia

** OPMobility is the least exposed, using Nexperia's chips only for its lighting unit which accounts for around 10% of its revenue, Thomas adds

(Reporting by Mathias de Rozario in Gdansk)

((mathias.derozario@thomsonreuters.com))