As some of the leading countries are set to ban the sale of new gasoline/diesel cars, electrification is the key to both solving global warming and controlling air quality. Given the above trend, OEMs are accelerating their adoption of electrified vehicle technologies. Along with this trend, electrification of automobiles has been expanding and the market for electric motor for automotive is foreseen to double its size to € 45 billion in 2030.
Nidec Leroy-Somer and Groupe PSA entered into a joint venture agreement to set up a joint venture dedicated to the design, development, manufacture, and sale of electric traction motors. The closing of such transaction remains subject to antitrust clearance and employee representative consultation.
Both the companies have acknowledged the strategic importance of traction motor in coming electrification age and agreed on mutual cooperation for developing high-performance and competitive electric traction motor range for electrified vehicles such as Mild-hybrid (“MHEV”), Electric Vehicles (“EV”) and Plug-in Hybrid (“PHEV”) to be developed by Groupe PSA and other OEMs.
The aim of the partnership is to design, develop, manufacture and sell a range of electric traction motors. The joint venture will then engage in R&D, manufacturing and sales for high-performance electric traction motor mainly to Groupe PSA, and to other OEMs later, by combining PSA’s knowledge on automotive as OEM and Nidec Leroy-Somer’s expertise of motor and related electrical equipment.
Nidec Leroy-Somer, acquired by Nidec in February 2017, is the leading motor company in France and renowned for its high-quality products in the industrial area as well as various other areas. Groupe PSA, the second largest market share of automotive industry in Europe, has been actively accelerating its shift to electrified vehicles.
The name of the company has not been disclosed till now but it has been informed that it will be headquartered in Carrières sous Poissy, Paris region, France.