The two companies are teaming up to start manufacturing high-voltage electric motors for both purely electric and hybrids cars.
The new venture, set to become operational by late 2016, will have its headquarters in Germany and its facilities in France, Norway, Poland, Hungary and China.
“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 product, Valeo would maintain its technological lead by offering a comprehensive line-up of technologies ranging from micro-hybrid to all-electric solutions.”
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 new joint venture will develop, produce and sell not only electric motors but hybrid drivetrain modules, range-extenders, DC/DC converters, inverters, chargers and eventually fully electric powertrains as well.
According to the two companies, the electric vehicle components market is expected to grow on an annual rate of more than 20% until 2020.