A new joint venture focused on high-voltage electric vehicle powertrains has been formed following the signing of an agreement between Siemens and Valeo, according to a recent press release from the companies.
The new joint venture is intended to lead to “substantial synergies” in manufacturing + sourcing, and also to establish a strong base for further growth + profitability. The terms of the agreement grant both Siemens and Valeo a 50% stake in the joint venture.
The agreement will see Valeo provide its high-voltage power electronics business (with all 200 employees), and Siemens will provide its E-Car Powertrain Systems Business Unit (with around 500 employees).
The press release provides more:
The joint venture will have full business responsibility for the development, the sales and the production of high-voltage electric motors and power electronics products above 60V, required for electrified passenger cars and light commercial vehicles. The joint-venture will be able to provide an extended range of products from hybrid drive-train modules and solutions, including electric motors, range-extenders, DC/DC converters, inverters and chargers, to a fully electrified powertrain.
…The company’s structures will be lean and adapted to global market requirements and the international competitive environment. Its headquarters will be located in Erlangen, Germany. The joint-venture will have a global focus and cost-efficient regional set-up, providing access to key markets for automotive electrification, such as Europe and China: headquartered in Germany, with facilities in France, Norway, Poland, Hungary and China.
“We are delighted at the perspective of combining our strengths with Siemens in electrified powertrain systems,” stated Jacques Aschenbroich, Chairman and CEO of Valeo. “With the expertise offered by Siemens, a leader in power electronics and electric motor product, Valeo would maintain its technological lead by offering a comprehensive line-up of technologies ranging from micro-hybrid to all-electric solutions. This joint venture also illustrates the ability of European companies to develop leading industrial partnerships to bring breakthrough technologies to the global market.”
The joint venture creation is still subject to approval from the relevant authorities. Operations are expected to begin sometime in Quarter 4 2016.