Groupe PSA and Nidec Corporation, through Nidec Leroy-Somer Holding, will form a joint venture in the field of electric traction motors. The JV will develop state of the art high-performance and competitive electric traction motor range for electrified vehicles—including mild-hybrid (MHEV), battery-electric (BEV) and plug-in hybrid (PHEV) vehicles—to meet the needs of Groupe PSA and other OEMs.
Groupe PSA has made the strategic choice to anchor the design and production of the main components of the electric traction powertrain in France. Closing of the JV agreement is subject to antitrust clearance and employee representative consultation.
The aim of the partnership is to design, develop, manufacture and sell a range of efficient electric traction machines. The joint venture will then engage R&D, manufacturing and sales for high-performance electric traction motor mainly to Groupe PSA, and to other OEMs, by combining PSA’s automotive OEM strengths and Nidec Leroy-Somer’s leading expertise of motor and related electrical equipment.
Driven by several factors, the electrification of automobiles has been expanding and the market of electric motors for automotive is projected to double to JPY 6 trillion (US$53.5 billion) in 2030. Nidec, the world’s leading manufacturer of small precision motors, has been also active in this trend.
Nidec has been actively developing a new growth platform with particular focus on automotive business. In its midterm strategic goal Vision 2020 it has targeted to achieve JPY 700 billion to 1 trillion (US$6.4 to 9.1 billion) of sales in automotive sector in 2020.
Nidec Leroy-Somer, acquired by Nidec on February 2017, is the leading electric motor company in France serving all industry sectors.
Groupe PSA has been actively accelerating its shift to electrified vehicles (MHEV, PHEV, EV). As part of the energy transition process and in line with the technological offensive spelled out in its “Push to Pass” strategic plan, Groupe PSA is focused on diversifying its technological offering with plug-in hybrid gasoline engines and next-generation electric powertrains.
The JV will be held 50/50 between the two partners, with an initial investment of €220 million (US$262 million).
Nidec expects no significant impact on its consolidated financial performance for the fiscal year ending 31 March 2018. Nidec will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.
The Groupe PSA fields five car brands—Peugeot, Citroën, DS, Opel and Vauxhall—as well as a wide array of mobility and smart services under its Free2Move brand, and aims to become a great carmaker and the preferred mobility provider.