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Nidec Leroy-Somer sets up traction motor JV with PSA

04 December, 2017

The Japanese electric motor-maker Nidec is setting up a joint venture with Europe’s second-largest automotive manufacturer, Groupe PSA, to design, develop, manufacture and sell electric traction motors. The partners are investing an initial €220m in the as-yet-unnamed business, which will combine PSA’s automotive experience with Nidec Leroy-Somer’s expertise in electric motors and related equipment.

As well as supplying Groupe PSA – whose brands include Peugeot, Citroën, DS, Opel and Vauxhall – the new business will also sell motors to other automotive OEMs for use in pure-electric and hybrid vehicles. It will produce a reported 900,000 traction motors per year from 2022.

Nidec has been developing a growth platform focusing on the automotive sector, with the goal of achieving €5.4–7.6bn of sales to this sector by 2020. Nidec acquired the French electric motor-maker Leroy-Somer and its sister company Control Techniques from Emerson in February 2017.

Groupe PSA has been accelerating its shift towards electrified vehicles and is diversifying by offering plug-in hybrid petrol engines and next-generation electric powertrains. It has decided to base the design and production of the main components for these powertrains in France.

Groupe PSA is planning to offer electric versions of all of its Vauxhall/Opel passenger vehicles by 2024.

The new motor company will be headquartered at Carrières sous Poissy in the Paris region. It is due to start operating in March/April 2018, subject to antitrust clearance and employee representative consultation.

The market for automotive electric motors has been predicted to double in size to €45bn by 2030.

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