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Groupe PSA and Nidec form French joint venture

The PSA-Nidec partnership will design, develop, manufacture and sell a range of electric traction machines

Nidec Leroy-Somer and Groupe PSA have acknowledged the strategic importance of traction motors in the coming electrification age. The companies agreed mutual cooperation for developing competitive electric traction motor range for electrified vehicles (Mild-hybrid (MHEV), Electric Vehicles (EV) and Plug-in Hybrid (PHEV).

The joint venture will 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.

Given the cleaner mobility trend, OEMs are accelerating their shift towards electrified vehicle technologies. Electrification of automobiles has been expanding and the market of electric motor for automotive is foreseen to double its size to JPY 6 trillion (US$52 billion) in 2030. Nidec has been also active in this trend and 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 billion) of sales in automotive sector in 2020.

The new 50:50 venture aims to be fully formed by Q1 2018, subject to closing, and will be headquartered in Carrières sous Poissy, France, with a production site in Trémery.

Groupe PSA has been 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 petrol engines and next-generation electric powertrains.

Nidec Leroy-Somer, acquired by Nidec on February 2017, is the one of the biggest electric motor producers  in France.

Closing of the transaction remains subject to antitrust clearance and employee representative consultation.

Source: Groupe PSA

 

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