Corporation and Groupe PSA, through Nidec Leroy-Somer Holding (the “Nidec
Leroy-Somer”), intend to set up a joint venture dedicated to the design,
development, manufacture and sale of electric traction motors. For this
purpose, Nidec Leroy-Somer and Groupe PSA entered into a joint venture
agreement on December 4, 2017. Closing of such transaction remains subject to
antitrust clearance and employee representative consultation.
Leroy-Somer and Groupe PSA have acknowledged the strategic importance of
traction motor in coming electrification age and agreed mutual cooperation for
developing high-performance and competitive electric traction motor range for
electrified vehicles such as Mild-hybrid (“MHEV”), Electric Vehicles (“EV”) and
Plug-in Hybrid (“PHEV”) to be developed by Groupe PSA and other OEMs.
The aim of
the partnership is to design, develop, manufacture and sell a range of electric
traction motors. The joint venture will then engage in R&D, manufacturing
and sales for high-performance electric traction motor mainly to Groupe PSA,
and to other OEMs later, by combining PSA’s knowledge on automotive as OEM and
Nidec Leroy-Somer’s expertise of motor and related electrical equipment.
and Background of the Transaction
As some of the leading countries are set to ban 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 motor for automotive
is foreseen to double its size to JPY 6 trillion (€ 45 billion) in 2030. Nidec
has been also active in this trend and developing products with its superior
been actively developing a new growth platform with particular focus on
automotive business. In its midterm strategic goal Vision 2020 it has targeted
to achieve JPY 700 billion to 1 trillion (€ 5.4 to 7.6 billion) of sales in the
automotive sector in 2020.
Leroy-Somer, acquired by Nidec in February 2017, is the leading motor company
in France and renowned for its high quality products in industrial area as well
as various other areas.
the second largest market share of automotive industry in Europe, has been
actively accelerating its shift to electrified vehicles (MHEV, PHEV, EV). 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 makes the strategic choice
to anchor in France the design and production of the main components of the
electric traction powertrain.
Information on the joint venture:
Company name: To be determined
Headquarters: Carrières sous Poissy, Paris region, France
Representative: To be appointed by Nidec Leroy-Somer
Foundation: March to April 2018 (To be determined)
Main business: Development, production, and sales of automotive electric
Initial Share Capitals: €15millions (Shareholders: Nidec Leroy-Somer 50%, PSA
automobiles* 50%) *PSA automobiles is a French company of Groupe PSA
Information on Nidec Leroy-Somer:
Company name: Nidec Leroy-Somer Holding
Headquarters: Angouleme, France
Representative: Xavier Trenchant, Chairman of the Board and CEO
Main business: R&D, manufacturing and sale of alternators, electric motors,
geared motors, variable speed drives, automation solutions and service
offers for industry
Information on PSA automobiles:
Company name: PSA automobiles SA
Headquarters: Poissy, France
Representative: Carlos Tavares, Chairman of the Managing Board, Xavier Chéreau,
Capital: € 300millions
Main business: Design, manufacturing & sales of cars and traction engine
Effect on Financial Performance for the Current Fiscal Year
The Transaction is expected to have no significant impact on Nidec’s
consolidated financial performance for the fiscal year ending March 31, 2018.
Nidec will make additional disclosure on a timely basis in accordance with the
rules of the Tokyo Stock Exchange upon determination of further details.
The Groupe PSA designs unique automotive experiences and delivers mobility
solutions to meet all client expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall, as well as a wide array of
mobility and smart services under its Free2Move brand, aiming to become a great carmaker and the preferred mobility provider.
It is an early innovator in the field of autonomous and connected
cars. It is also involved in financing activities through Banque PSA Finance and in
automotive equipment via Faurecia. Find out more at
groupe-psa.com/en. Media library: medialibrary.groupe-psa.com