PSA EV Cutway
PSA Group and Nidec have announced a joint venture for automotive electric traction motors that will be set-up in France in early 2018 to meet the needs of PSA and other OEMs.
Japanese Nidec will participate in the JV through Nidec Leroy-Somer Holding (French electric motor company, acquired by Nidec in February).
Investment: € 220 Million (50% Nidec / 50% PSA)
Target: 900,000 motors annually in 2022
The new company will design, develop, manufacture and sell a range of efficient electric traction machines for electric, plug-in hybrid and conventional hybrid vehicles.
In several years, the joint production of traction motors could grow to hundreds of thousands annually. Patrice Lucas, PSA’s executive vice president for strategy, said that the capacity could be 900,000 motors per year from 2022 (Reuters).
1. Purpose and Background of the Transaction
As an anticipation of energy transition towards a cleaner mobility, electrification is the key to both solving global warming and controlling air quality with a well to wheel approach. Given the above trend, OEMs are accelerating their shift towards electrified vehicle technologies. Along with this trend, electrification of automobiles has been expanding and the market of electric motor for automotive is foreseen to double its size to JPY 6 trillion (€ 45 billion) in 2030. Nidec has been also active in this trend and developing products with its superior motor expertise. Nidec has been actively developing a new growth platform with particular focus on automotive business. In its midterm strategic goal Vision 2020 it has targeted to achieve JPY 700 billion to 1 trillion (€ 5,4 to 7,6 billion) of sales in automotive sector in 2020. Nidec Leroy-Somer, acquired by Nidec on February 2017, is the leading electric motor company in France serving all industry sector and renowned for its high quality products providing the best value to customers. Groupe PSA, which is a European champion with the second position on the European market, has been actively accelerating its shift to electrified vehicles (MHEV, PHEV, EV). As part of the energy transition process and in line with the technological offensive spelled out in its “Push to Pass” strategic plan, Groupe PSA is focused on diversifying its technological offering with plug-in hybrid petrol engines and next-generation electric powertrains.
2. Information on the joint venture: Foundation: 1er quarter 2018, subject to closing Headquarters: Carrières sous Poissy, Paris region, France R&D facilities: Carrières sous Poissy, Paris region, France Production facilities: Trémery, Metz region, France Shareholders: 50% Nidec Leroy-Somer Holding /50% Groupe PSA Investment: € 220 Million
3. Effect on Financial Performance for the Current Fiscal Year
The Transaction is expected to have no significant impact on Nidec’s consolidated financial performance for the fiscal year ending March 31, 2018. Nidec will make additional disclosure on a timely basis in accordance with the rules of the Tokyo Stock Exchange upon determination of further details.