French car maker Peugeot’s parent company PSA Group is currently working to bring back the development as well as production of electric motors to France. For this the automaker has entered a joint venture with the Japanese company Nidec Corp, which will be investing a whopping 200 million Euros ($237 million) initially in the project. The Franco-Japanese JV which involves the car maker and the motors manufacturer, respectively, will be aiming to equip the upcoming new electric vehicles branded Peugeot, Citroen, DS, Opel and Vauxhall from 2022. This new JV will be carrying forward the job of developing and manufacturing electric motors from German Continental and the Valeo-Siemens Automotive joint venture that will be endowing its electric motors on the first electric and hybrid cars models from PSA group, which will be launching in 2019.
In these terms, PSA Group is following French car maker Renault, which send back its electric motor production to its home market many years back. While speaking on this development in a presentation, PSA Group’s executive vice president for strategy, Patrice Lucas, said that through this association, the company aims to move to a strategic phase which will give the company more control.
The PSA-Nidec partnership is expected to targeting a production capacity of 900,000 electric motors each year going forward from 2022, Lucas added. The French and Japanese companies said in a statement that the market for the electric vehicle motors is likely get double to 45 billion Euros (53 billion US dollars) in the time period of the coming 20 years, as the global auto industry is undergoing a huge change. The government bodies are mandating alternative fuel vehicles and by bringing in stricter emission norms. As a result, the consumers are increasingly also moving towards the electrified vehicles, fearing that the conventional combustion engine run vehicles might get banned in near future.
Japanese manufacturer Nidec will be operating the joint venture through the Nidec Leroy-Somer, the French electric motor manufacturing firm that it had acquired earlier this year. The executive vice president for Nidec, Tetsuo Onishi said that the joint venture’s capitals would remain split 50-50 between the two companies once the production of the electric motors begins. However, Nidec will be taking control over the sales part. Onishi added by saying that PSA will be the primary customer, but the motors will be offered for sales to the other automakers as well.
The Japanese company has also said that as the global competition to manufacture electric cars and automated cars has been increasing, it wants to become an international auto parts supplier competing with the likes of Germany's Robert Bosch and fellow company Denso Corp. Nidec is a highly acquisitive company and announced last week it has owned driveXpert GmbH, an automobile electronic control units manufacturer, while earlier this year Nidec has acquired Emerson Electric, which is a motor and electric power generation firm.
The PSA-Nidec joint venture's headquarters will be based in Carrieres-sous-Poissy close to Paris, while production will take place at PSA's massive diesel engine manufacturing facility in Tremery.