The German industrial giant Siemens (www.siemens.com) and the French automotive supplier Valeo (www.valeo.com) have agreed to establish a 50:50 joint venture to develop powertrains for electric cars. This will have its headquarters in Erlangen, Germany, with facilities in France, Norway, Poland, Hungary and China.

Subject to approval from the regulatory authorities, it is anticipated to start operations during the last quarter of this year. The joint venture will combine Valeo’s high-voltage power electronics business, which employs 200 people, with the E-Car Powertrain Systems business of Siemens, which has 500 employees.

A spokesman for the two companies said that the new joint venture will have “sole responsibility for development, sales and production of high-voltage electric motors and power electronics components for voltages of 60V and more”.

The product range includes hybrid drive modules and solutions, electric motors, range extenders, DC/DC converters, rectifiers and charging systems, as well as entire electric powertrains.

Siemens managing board member Klaus Helmrich 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 world-wide customer base would give both companies a solid basis in the growing electro-mobility market.”

Valeo CEO Jacques Aschenbroich said: “This joint venture also illustrates the ability of European companies to develop leading industrial partnerships to bring breakthrough technologies to the global market.”