Nidec, Groupe PSA Enter JV Agreement For Automotive Electric Traction Motor

(RTTNews) - Nidec Corp. (NJDCY.PK) announced the company and Groupe PSA, through Nidec Leroy-Somer Holding, intend to set up a joint venture dedicated to the design, development, manufacture and sale of electric traction motors. Nidec Leroy-Somer, acquired by Nidec in February 2017, is a motor company in France.

The companies said 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 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.

The transaction is expected to have no significant impact on Nidec's consolidated financial performance for the fiscal year ending March 31, 2018.