SIEMENS AND VALEO JOIN FORCES IN ELECTRIC POWERTRAINS
Siemens and Valeo have signed an agreement to form a joint venture in high voltage powertrains. With this move the companies create a supplier of innovative and affordable high-voltage components and systems for the entire range of electric vehicles including hybrids, plug-in hybrids and full electric vehicles.
Building upon their complementary scope and portfolio, the joint venture will provide 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. According to the agreement, Siemens and Valeo will each hold a 50% stake in the joint venture, have joint control and account for their respective stake using the equity method.
“We are delighted at the perspective of combining our strengths with Siemens in electrified powertrain systems,” said Jacques Aschenbroich, Chairman and Chief Executive Officer 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.”
Valeo will be contributing its high-voltage power electronics business, including 200 employees of which 90 are based in France, and which is part of the Powertrain Systems Business Group (PTS), Siemens will be contributing its E-Car Powertrain Systems Business Unit, employing around 500 people of which 370 are based in Germany and 130 in China. 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.
Siemens and Valeo strongly complement one another with regard to their product portfolios, production know-how and geographical spread. 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.