The Japanese electric motor specialist Nidec and the Chinese vehicle manufacturer GAC have agreed to set up a joint venture for traction motors. The drives will initially be installed in GAC’s electric cars, but will later also be used by other manufacturers.
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The joint venture Guangzhou Nidec Auto Drive System, headquartered in Guanzhou, is to be 51 per cent owned by Nidec and 49 per cent by GAC’s subsidiary GAC Components. Subject to approval by the competition authorities, it will be founded in September or October 2019. The share capital is stated in a statement by Nidec to be 600 million yuan (approximately 87 million US dollars).
The engines will be developed by engineers in China to accelerate product development and design. Besides, GAC can better utilise its purchasing capacities in this way.
Nidec builds electric motors for a wide variety of applications but recently expanded its automotive business. Climate change announced bans on the registration of combustion engines and, last but not least, the demand from industry mean that the Japanese expect sales in the automotive sector to double by 2030.
So far, GAC Components has manufactured parts for interiors as well as various electrical components for battery-electric cars and plug-in hybrids. The primary customer is, of course, GAC itself, but the company’s joint ventures with Japanese car manufacturers Toyota, Mitsubishi and Honda will benefit as well.
At a later stage, third-party carmakers may also buy the electric traction motors developed and produced by Nidec and GAC.
Update 11.11.2019: Nidec and GAC have now completed the establishment of the joint venture. The joint venture Guangzhou Nidec Auto Drive System is 51 per cent owned by Nidec. By the end of 2020, the company is expected to employ 70 people. Nidec’s share capital amounts to 600 million yuan, the equivalent of around 78 million euros.
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