Peugeot maker PSA Group and Japan’s Nidec Corp stated they will invest 200 million euros ($237.18 million) in a joint venture to establish and produce electric car motors in France.
The goal of the joint venture is to make high-performance “electric traction motor” for PSA Group and possibly other automobile makers. Nidec Corp will act through Nidec Leroy-Somer, the French electric motor business that it acquired in February this year.
The marketplace for auto electrical motors is anticipated to double to 45 billion euros by 2030, the companies said.
The transaction remains subject to antitrust clearance and assessments with staff member representatives. The joint venture’s headquarters will be in Carrieres-sous-Poissy close to Paris.
“Groupe PSA makes the tactical option to anchor in France the design and production of the main elements of the electric traction powertrain,” the statement included.
