Siemens and Valeo Set Up Joint Venture for EV Powertrains

Siemens and Valeo are claiming to create a global leader in the electric powertrain market with their launch of a joint venture for high-voltage drives for EVs. The JV will offer components and systems for a wide array of EVs from hybrid to plug-in hybrid and battery electric vehicles. With their corresponding products and technologies, both parent companies are anticipating to quickly activate huge synergies.

Siemens and Valeo estimate that the EV component market will expand at a speed of 20 percent yearly until 2020. With the companies’ still unnamed JV, they look forward to taking a top position in this growth market. Both parents will hold 50 percent of the shares each. Siemens’ contribution is its E-Car Powertrain business, which currently employs some 500 workers, 130 of which are in China and 370 in Germany. Meanwhile, Valeo contributes its Powertrain Systems Business Group (PTS) with some 200 workers, mostly in France.

As per the agreement terms, the JV will assume the responsibility for development, production and sales of high-voltage electric motors and power electronics components for voltages of 60V and more. Such components are often installed in electric passenger vehicles and light trucks. Included in the product range are electric motors, hybrid drive modules and solutions, DC/DC converters and range extenders, charging systems and rectifiers as well as entire electric powertrains.

When it comes to product range, the production expertise and geographical positioning of the two companies are very complementary.

Being a top supplier to the automotive sector, Valeo boasts its strong industrial expertise that provides a global customer base in powertrains with competitive and state-of-the-art high-voltage electronics manufactured by automotive certified production lines. Siemen’s e-car unit utilizes the Group’s system design competences in electric drivetrains, its engineering and validation base with high experience in traction motor products. The new company will be based in Erlangen, Germany. Moreover, it will run activities in China, Hungary, Poland, Norway and France. The JV is slated to resume its activities with 700 workers in the fourth quarter, provided that the authorities will grant approval.