Engineering news
German engineering company Siemens and French automotive supplier Valeo are teaming up to develop engines for electric and hybrid cars in global mass markets.
In a joint venture announced on 18 April, the two companies will create powertrains in a move to create a global leader 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.
The venture will combine Valeo's high-voltage power electronics business, which employs 200 people, with the e-car powertrain systems business unit at Siemens that employs around 500 and will have headquarters in Erlangen, Germany, and facilities in France, Norway, Poland, Hungary and China to become operational in late 2016.
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. 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.
Jacques Aschenbroich, chairman and chief executive of Valeo, said: "We are delighted at the perspective of combining our strengths with Siemens in electrified powertrain systems.
"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."
Klaus Helmrich, member of the managing board of Siemens, added: "The Valeo Siemens joint venture is yet another example of forming a true Europe based company. Combining Siemens' extensive experience in electric motors and inverters with Valeo's automotive business expertise and worldwide customer base would provide both companies with a solid basis in the growing electro mobility market."
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.