Valeo has announced a 50/50 joint venture agreement project with Siemens, dedicated to high-voltage powertrains. The joint venture will capitalize on Valeo’s and Siemens’ leading positions in their respective sectors, with the ultimate goal of creating a global leader in the fast-growing market of automotive electrification.
The two industry leaders plan to join forces to offer the most complete and innovative range of high-voltage (above 60V) components and systems, including e-motors, onboard chargers, inverters, DC/DC converters, for all types of electric vehicles.
Valeo will contribute its high-voltage power electronics business to the joint venture. The business makes onboard chargers, inverters, DC/DC converters, employing around 200 people, 90 of whom are based in France. Its under-60V powertrain activity would not be part of this joint venture. Siemens will contribute its E-Car Powertrain Systems Business Unit to the joint venture, employing around 500 people, 370 of whom are based in Germany and 130 in China.
The joint venture will be headquartered in Erlangen, Germany.
The newly created entity would leverage on Valeo’s and Siemens’ strong complementarity product portfolios and geographical spread, generating synergies in manufacturing and sourcing. The joint venture’s strengths in production and development would allow it to target customers on a global level as well as in specific key markets.
“We are delighted at the perspective of combining our strengths with Siemens in electrified powertrain systems,” said Jacques Aschenbroich, chairman and CEO of Valeo. “With the expertise offered by Siemens, a leader in power electronics and electric motor products, Valeo would maintain its technological lead by offering a comprehensive lineup 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, said, “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.”
The project is subject to consultation of the employee representatives and approval by the relevant authorities.
