Valeo, an automotive supplier and technology company, and Siemens, which provides electrification, automation and digitalization services across several platforms, say that their new joint venture dedicated to high-voltage powertrains has begun operations.
As reported, the name of the new company is Valeo Siemens eAutomotive GmbH, and it will be managed by Louis Pourdieu as CEO and Peter Geilen as chief financial officer.
“I am truly delighted about the creation of this joint venture, which will enable us to provide solutions for all vehicle manufacturers, whatever their powertrain electrification needs,” comments Jacques Aschenbroich, chairman and CEO of Valeo.
Klaus Helmrich, member of the managing board of Siemens AG, says, “Only seven months after signing the agreement, we are happy to announce the closing of our transaction and start of operations of our joint venture with Valeo. The new company will be a true global leader in the growing electromobility market.”
In April 2016, Valeo and Siemens signed an agreement to form a joint venture in high-voltage powertrains for on-road vehicles, including hybrids, plug-in hybrids and full electric vehicles. According to the agreement, Siemens and Valeo will each hold a 50% stake in the joint venture and have joint control.
Under the agreement, Valeo and Siemens will supply innovative and affordable high-voltage components and systems – including e-motors, range extenders, onboard chargers, inverters and DC/DC converters – for the entire range of on-road electric vehicles. Specifically, Valeo will contribute its high-voltage power electronics, range extenders and charging solutions, and Siemens will contribute its eCar Powertrain Systems business unit, including e-motors and power electronics.
The companies say that this joint venture will benefit from substantial synergies in manufacturing and sourcing and will create a base for sustained growth and profitability, noting that the electric vehicle components market is expected to grow with a compound annual growth rate of more than 20% until 2020.