Groupe PSA and Nidec Corporation, through Nidec Leroy-Somer Holding, have completed the establishment of their joint venture, announced last year, to develop, manufacture and sell automotive electric traction motors.
Headquartered in Carrières sous Poissy, Paris region, France, Nidec-PSA emotors has so far recruited 40 engineers for the JV. By the end of summer, 30 more engineers are expected to join the site, where a dedicated R&D area has been created. They will design new traction electric motors to be produced in the Tremery plant, Moselle area, in France, and integrated in Mild-hybrid (MHEV), Electric Vehicles (EV) and Plug-in Hybrid (PHEV) vehicles.
The two companies will invest EUR 220 million (USD 256 million) in the 50-50 joint venture, which will support Group PSA’s electrification push. The French automaker said 100% of its vehicle range will include an electrified offering by 2025.
As some of the leading countries are set to ban the sale of new gasoline/diesel cars, electrification is the key to both solving global warming and controlling air quality. Given the above trend, OEMs are accelerating their adoption of electrified vehicle technologies. Along with this trend, electrification of automobiles has been expanding and the market for electric motors for automotive is foreseen to double its size to JPY 6 trillion (USD 54.8 billion) in 2030.
Japan’s Nidec Group specializes and handles motor application products based on “everything that spins and moves,” centering around a motor business that comprises an expansive product line from small precision to supersized motors. Nidec has been actively developing a new growth platform with a particular focus on the automotive business. In its mid-term strategic goal Vision 2020, it has targeted to achieve JPY 700 billion to 1 trillion (USD 6.4 billion to 9.1 billion) of sales in the automotive sector in 2020.
Nidec Leroy-Somer, which was acquired by Nidec in February 2017, is the leading motor company in France, renowned for its high-quality products in the industrial area.
Groupe PSA, which has the second largest market share in the automotive industry in Europe, has been actively accelerating its shift to electrified vehicles. 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. Groupe PSA has made the strategic choice to anchor in France the design and production of the main components of the electric traction powertrain.