Dana Incorporated and Hydro-Quebec enter into a joint-venture in which TM4 Inc., a subsidiary of Hydro-Quebec, will become Dana's source for electric motors, power inverters, and control systems. As part of this agreement, Dana will become a majority shareholder of TM4 in exchange for $127 million (Rs 861 crore), while Hydro-Quebec will hold 45 percent interest in TM4.
TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles, offering a complementary portfolio to Dana's electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The company claims this transaction will establish Dana as the only supplier with full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end-markets.
TM4 was founded in 1998 by Hydro-Quebec, which is said to be Canada's largest electricity producer and one of the world's largest hydroelectric power producers. TM4 operates a technology and advanced manufacturing facility in Boucherville, Quebec. Consistent with Dana's globally distributed technical centre model, Boucherville will remain a centre of excellence, with TM4's current management team and 130 employees remaining in place.
Jim Kamsickas, president and CEO, Dana, said, "This joint venture brings together a world leader in mechanical power conveyance and thermal-management technology with an experienced manufacturer of electric motors and inverters to offer a broad range of hybrid and electric vehicle solutions for our customers across all three of our end markets."
Eric Martel, president and CEO, Hydro-Quebec said: "Transportation electrification is at a turning point. In this context, Hydro-Quebec has initiated a rigorous process to identify the winning conditions that will allow TM4 to reach its full potential."
This transaction further strengthens Dana's position in China, the world's fastest-growing market for electric vehicles. TM4 and Prestolite Electric Beijing have a 50-50 joint venture in China, called Prestolite E-Propulsion Systems, which offers electric mobility solutions throughout China and the ASEAN region. Dana states it is confident that this transaction would further strengthen its position in China, one of the fastest growing markets for electric vehicles.