Dana Becomes Majority Shareholder Of Hydro-Quebec’s TM4

JUL 4 2018 BY MARK KANE 4

The electric motors, power inverters, and control systems manufacturer TM4 (a subsidiary of Hydro-Quebec) is now part of automotive supplier Dana.

Dana acquired a majority stake in TM4 for CA$165 million (approximately US$127 million), but Hydro-Québec will maintain a 45% interest in TM4.

The Canadian company was founded in 1998 and in the EV world is most known for its high-torque electric powertrains, that don’t require additional gearboxes in electric buses and trucks. Having TM4 in its portfolio, Dana will be able to supply complete gearbox, motor, inverter, and thermal-management for electric vehicles.

Among the TM4’s customers we see Workhorse, Cummins and more around the world and over in China, TM4 also formed with Prestolite Electric Beijing Limited a joint-venture Prestolite E-Propulsion Systems Limited.

TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles, offering a complementary portfolio to Dana’s electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The transaction establishes Dana as the only supplier with full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end markets.

TM4 was founded in 1998 by Hydro-Québec, Canada’s largest electricity producer and one of the world’s largest hydroelectric power producers. TM4 operates a technology and advanced manufacturing facility in Boucherville, Québec. Consistent with Dana’s proven, globally distributed technical center model, Boucherville will remain a center of excellence, with TM4’s current management team and 130 employees remaining in place.

Dana is a world leader in highly engineered solutions for improving the efficiency, performance, and sustainability of powered vehicles and machinery. Dana supports the passenger vehicle, commercial truck, and off-highway markets, as well as industrial and stationary equipment applications.”

Jim Kamsickas, Dana president and CEO said:

“We are excited to welcome TM4 into Dana’s global family and to be partnering with Hydro-Québec, a leader in the generation of energy that fully comprehends the megatrends surrounding energy efficiency and the rapidly developing electrification infrastructure requirements around the globe. This joint venture brings together a world leader in mechanical power conveyance and thermal-management technology with an experienced manufacturer of electric motors and inverters to offer a broad range of hybrid and electric vehicle solutions for our customers across all three of our end markets.”

“Through this partnership, TM4 becomes a pillar in Dana’s e-Propulsion business. The company has an exceptionally talented team that has demonstrated a commitment to delivering world-class products and services, and we are excited about working with Hydro-Québec to profitably grow the business by providing our customers fully integrated, turnkey driveline solutions.”

Éric Martel, president and CEO of Hydro-Québec said:

“Transportation electrification is at a turning point. In this context, Hydro-Québec has initiated a rigorous process to identify the winning conditions that will allow TM4 to reach its full potential. Today’s announcement strengthens Boucherville’s position as a world-class center of excellence, and further confirms our expertise in the sector. We wanted to join an industrial partner to accelerate TM4’s market access to become a global leader, to the benefit of all Quebecers. This transaction will strengthen the activities of TM4 in Quebec.”

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4 Comments on "Dana Becomes Majority Shareholder Of Hydro-Quebec’s TM4"

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SJC

Smart move, good products with a brand.

Marc

When Hydro was nationalised in Québec during the early 1960’s, everybody else in Canada believed Québec politicians would squander that new company, Hydro-Québec. It was widely believed that company would somehow end up with a banana republic-style management, where graft and corruption would abound.

Suffice it to say, the naysayers were wrong. For nearly 60 years, Hydro-Québec invested in its human capital, in areas connected to its savoir-faire, and in emerging technology. Québec politicians generally kept their hands away from Hydro-Québec. Today, the province of Québec is once more reaping those benefits.

In my home province, Ontario, the outcome was completely different. Ontario-Hydro, which eventually split into Hydro One and Ontario Power Generation under the Conservatives, and was privatised under the Liberals, remains a perpetual failure that keeps haunting every single generation of politicians since the 1960’s. Its debt-load is astronomical, and it keeps dragging down Ontario’s industry.

Thus, the debate shouldn’t be about whether public or private companies are better or worse. It should be about what is the best way to create a good corporate culture. This is what we’re seeing in this tale of two public corporations.

Paul K
The irony is that Ontario hydro was the creation of a Conservative government who had realized that electricity was going to be replacing steam as the driver of industry. The mantra was “public power at cost” another irony. Socialism from a conservative government! American private power producers and conservative publications went berserk with warnings about how the Ontario economy would be ruined by this public folly and Ontario was now the worst place to make investments. Well it turned out to be a case of: “You build it and they will come” With prices 1/3 of what private producers were charging industry came roaring in and Ontario became the manufacturing heartland of Canada. Conservative premier Adam Beck famously stated that they would put “bands of steel” around their creation so that no politicians in the future would be able to “undo what we have done”. ha ha ha. During the more recent reign of the Harris Conservatives maintenance was neglected with brown outs and some outages as a result during peak periods. With a greener approach to energy, the recent Liberal gov’t of Kathleen Wynn closed two massive coal burning stations and upped the maintenance. Over zealously they gave extremely… Read more »
Marc

Paul, you’ve made me more interested in Ontario Hydro’s history. Got some reading to do!

(I often wish electricity in Ontario had been managed like the Ontario Teachers Pension Plan… I guess you can’t win ’em all.)