In April 2016, Valeo and Siemens signed an agreement to form a joint venture in high voltage powertrains for on road vehicles. The portfolio comprises e-motors, range extenders, onboard chargers, inverters and DC/DC converters, destined for the entire range of on-road electric vehicles including hybrids, plug-in hybrids and full electric vehicles. Valeo will contribute to the joint venture its high voltage power electronics, range extenders and charging solutions and Siemens its eCar Powertrain Systems business unit including e-motors and power electronics.

Building upon their complementary scope and portfolio, the joint venture will benefit from substantial synergies in manufacturing and sourcing and create a base for sustained growth and profitability. The electric vehicle components market is expected to grow with a compound annual growth rate of more than 20% until 2020.

The joint company will include R&D centers in France (Cergy-Pontoise); Germany (Erlangen, Bad Neustadt); Norway (Drammen); and China (Shanghai) as well as plants in Germany (Erlangen, Bad Neustadt); Hungary (Veszprem); Poland (Czechowice); and China (Changzhou, Shenzen and Tianjin).