Siemens and Valeo have signed an agreement to establish a joint venture (JV) to develop powertrains for electric cars.
The JV will have headquarters in Erlangen, Germany, and facilities in France, Norway, Poland, Hungary and China.
Subject to approval from regulatory authorities, the JV is anticipated to start its operations during last quarter of this year..
The JV will assume the sole responsibility for development, sales and production of high-voltage electric motors and power electronics components for voltages of 60V and more.
The product range includes hybrid drive modules and solutions, electric motors, range extenders, DC/DC converters, rectifiers and charging systems as well as entire electric powertrains.
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 has 500 employees.
Valeo and Siemens will each own a 50% stake in the JV, have joint control and account for their respective interest using the equity method.
Siemens managing board member Klaus Helmrich said: "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."
Valeo chairman and CEO Jacques Aschenbroich said:
"This joint venture also illustrates the ability of European companies to develop leading industrial partnerships to bring breakthrough technologies to the global market."
The electric vehicle components market is anticipated to increase with a compound annual growth rate of over 20% until 2020.
