Siemens and Valeo have signed an agreement to form a joint venture in high voltage powertrains. With this move the companies 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 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.”
Klaus Helmrich, member of the managing board of Siemens AG, 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.”
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 project is subject to consultation of the employee representatives. Subject to approval of the relevant authorities, the joint venture is expected to start operations in the last quarter of calendar year 2016.
May 6, 2016