How Valeo Is Accelerating the Software-defined Revolution in Mobility with Innovative Growth Strategies

Rachel Forestier, Group Marketing Director, Valeo, in conversation with Hikmet Cakmak, Director of Consulting for Mobility at Frost & Sullivan Europe.

At the IAA Mobility Expo 2025 in Munich, Germany, Valeo unveiled its bold transition from engines to algorithms, positioning itself at the center of the software-defined vehicles revolution in the mobility industry. In this Movers & Shakers conversation, Rachel Forestier, Group Marketing Director at Valeo, discusses how the company is redefining its identity around software, electrification, and sustainability, while strengthening its ecosystem through global partnerships.

Powering the Next Generation of Software-defined Vehicles

Hikmet Cakmak: The industry is rapidly shifting from mechanical to digital value. How is software shaping Valeo’s identity and its vision for future mobility?

Rachel Forestier: In the next few years all the cars will be software-driven, and that’s where value will increasingly be captured. Valeo is proud to be at the forefront of this transformation. At the IAA Mobility Expo 2025, we showcased a new mock-up that highlights the full range of our software capabilities, from Software-as-a-Product (SaaP) and middleware to services, cloud-native tools, and integration expertise.

Our new software catalog spans multiple domains, including advanced driver assistance systems (ADAS), interior experience, powertrain, thermal systems, and lighting. For each area, we now offer features as a product that can be delivered over-the-air (OTA), allowing automakers to enhance vehicles dynamically throughout their lifecycle.

Enhancing Safety and Support Through Intelligent Assistance

Hikmet Cakmak: You mentioned feature-based solutions. One of them, AssistXR, seems to draw attention. Can you tell us what it does?

Rachel Forestier: AssistXR is a great example of how software enhances existing hardware. Modern vehicles already have extensive sensor networks inside and outside the cabin. AssistXR leverages these sensors to create a real-time assistance service that can detect emergencies or breakdowns and automatically transmit telemetric data to support centers.

It can even interpret passenger conditions in the event of an accident to enable the fastest and most appropriate response. This solution demonstrates how Valeo’s software bridges data, intelligence, and safety to create a more responsive mobility experience.

Strategic Collaborations That Fuel Safer On-road Experiences

Hikmet Cakmak: Safety has always been a key pillar for Valeo. Can you highlight some of your latest innovations in this segment?

Rachel Forestier: Valeo has recently partnered with Ennostar to develop smart automotive exterior displays using high-definition mini-LED technology, enhancing V2X [vehicle-to-everything] communication and improving road safety by enabling clearer interactions between vehicles and other road users. This innovation enables ultra-precise light projection, even complex characters such as Chinese text, creating a new language of safety and interaction on the road.

Such solutions represent our vision of intelligent communication between vehicles, pedestrians, and infrastructure, where safety is built not just on sensors but also on the ability to express and share information in real time.

Making Electrification More Accessible and Efficient

Hikmet Cakmak: Electrification has been one of the main themes of this year’s event. How is Valeo helping to make electrification more accessible and efficient?

Rachel Forestier: Electrification is central to our strategy. Valeo offers a comprehensive portfolio of solutions covering powertrain and thermal systems for battery electric vehicles (BEVs), plug-in hybrids, and range extenders.

For BEVs specifically, we focus on three key levers to make them more affordable and efficient:

1. Integrating multiple features into a single system to reduce complexity and cost.
2. Reducing weight and improving compactness to optimize performance.
3. Increasing motor speed to minimize size and material use.

These measures help our customers design cleaner, lighter, and more accessible EVs without compromising on performance.

Building a Sustainable Future Through Innovation

Hikmet Cakmak: Sustainability is a major focus in mobility today. What key innovations is Valeo introducing in this area?

Rachel Forestier: Sustainability is a cornerstone of our carbon ambition plan 50 (CAP 50), and we’re approaching it through multiple dimensions. First, we’re remanufacturing products like inverters to extend their lifecycle. Second, we’re introducing new materials with lower environmental impact. Third, we’re designing new generations of products that inherently reduce carbon emissions.

A great example is the new e-Drive system developed with Mahle, which eliminates magnets and rare earth materials, cutting its carbon footprint by around 40%. This is sustainability through innovation, making every step of electrification cleaner.

Ecosystem Alliances Powering the Software-defined Revolution

Hikmet Cakmak: With so many transformations happening at once, collaborations and partnerships would be critical. What kind of strategic partnerships is Valeo building to achieve its goals?

Rachel Forestier: The success of this revolution will depend on ecosystem collaborations. We partner not only with automakers but also with global technology leaders such as AWS, Qualcomm, and Momenta to accelerate the software stack for ADAS and autonomous driving. By connecting with experts across software, hardware, and cloud, we can deliver more integrated and scalable solutions to our customers.

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Driving the Next Era of Intelligent Mobility

Hikmet Cakmak: Looking ahead, where do you see Valeo’s role in the future of mobility?

Rachel Forestier: We believe the future of mobility will be safer, more sustainable, and fully software-driven. Valeo is deeply committed to that direction. Our goal is to make vehicles more electric, more automated, and more intelligent, while ensuring affordability and speed of innovation. With a clear strategy and an expanding ecosystem, Valeo will continue to help shape this new era of global mobility, turning technology into meaningful value for people.