PSA Teams with Nidec on Electric Motors

PSA Group is forming a joint venture with Nidec Corp.’s Leroy-Somer Holding unit to develop and produce electric motors for electrified vehicles.

The partners are investing €220 million ($261 million) in the 50:50 venture, which will be based in France. The deal is expected to close in the first quarter of 2018.

PSA says the new company will produce about 900,000 electric motors per year by 2022. The motors will be used in future mild-hybrid, hybrid and full-electric Peugeot, Citroen and DS vehicles, as well as Opel- and Vauxhall-badged models. PSA acquired Opel-Vauxhall from General Motors Co. in August.

PSA's latest business plan calls for 80% of its models to have an electrified powertrain option by 2023. The carmaker, which currently makes two EVs—the Citroen C Zero and its Peugeot iOn twin—will add full-electric versions of the Peugeot 208 and upcoming DS 3 Crossback subcompact cars in 2019. Several plug-in hybrid vehicles, which will ride on the carmaker’s new EMP2 platform, also are in the works.

Japan-based Nidec acquired French electric motor specialist Leroy-Somer early this year. The company also has made several other recent purchases, including driveXpert (electronic control units) and Emerson Electric’s motor and electric power generation and drive businesses.

In September Nidec introduced an integrated motor and gearbox system for electrified powertrains. The company aims to increase automotive sales from an estimated 700 billion yen ($6.2 billion) this year to 1 trillion ($8.9 billion) by 2020.