Dec. 17 (Bloomberg) -- Valeo SA, France’s second-biggest auto-parts maker, said it will cut 5,000 jobs, or 9.3 percent of its global workforce, as it adjusts to a “sharp drop” in vehicle production.

Valeo’s French plants will lose 1,600 positions, with 1,800 jobs cut in other European countries, the Paris-based company said in an e-mailed statement today.

“For 2009, Valeo anticipates no improvement in production levels compared with the fourth quarter of 2008,” the company said.

European car registrations plunged 26 percent in November, the Brussels-based Association of European Carmakers said yesterday, after a 16 percent drop in October. Parts suppliers are suffering as carmakers shutter sites in an attempt to reverse a build-up of unsold vehicles.

“Valeo must reduce its permanent headcount in order to maintain competitiveness,” the company said, adding that it will be “prioritizing voluntary departures.”

Valeo said it employed 54,000 globally as of Nov. 30.

To contact the reporter on this story: Laurence Frost in Paris at lfrost4@bloomberg.net.

Last Updated: December 17, 2008 12:19 EST