Valeo has acquired Siemens’ 50% stake in Valeo Siemens eAutomotive, as provided for in the agreement signed with Siemens on February 9. As a result, Valeo now holds 100% of Valeo Siemens eAutomotive, the leader in high-voltage electrification, which has been integrated into its Powertrain Systems business.
This strategic transaction strengthens Valeo’s position as a major player in electrification with a full range of low- and high-voltage electric powertrain solutions covering all uses and needs.
Christophe Perillat, Valeo’s CEO, commented: “Valeo is accelerating in electrification, as announced at the presentation of our Move Up plan. Thanks to this transaction, Valeo has positioned itself better than ever before as a leader in electric mobility, with a unique advantage in this fast-accelerating market and with a range of technologies that covers absolutely all needs and uses."
He added, "This integration makes us even more innovative and competitive. We will benefit from the unique expertise in high-voltage electrification developed by Valeo Siemens eAutomotive’s teams. In return, the business will benefit from Valeo’s unique ability to innovate and standardise cutting-edge technologies as well as from our operational excellence in mass production. I would like to thank Siemens for their valuable partnership over the past few years.”
With Valeo Siemens eAutomotive, Valeo is bringing on board a recognized technological and industrial leader with approximately 4,000 employees, including more than 1,600 engineers, 7 production sites in 4 countries (China, Germany, Hungary and Poland) as well as cutting-edge R&D (laboratories, test benches, simulation tools) and production capacities.
Its electric powertrain systems, motors, inverters and onboard chargers feature on the main platforms of more than 20 automakers and will equip more than 90 electric and plug-in hybrid car models by the end of 2022.
In early June, Valeo Siemens eAutomotive announced that it had already exceeded its target of more than 4 billion euros (Rs 32,988 crore) in orders for the 2021–2022 period, more than seven months ahead of its roadmap.
The value of the high-voltage electrification market is set to increase significantly in the coming years and will represent 92 billion euros (Rs 758,724 crore) in 2030 (annualised growth of 17.5% over the 2021–2030 period). Around 40% of this market will be outsourced to automotive suppliers. By 2030, the market for vehicles equipped with high-voltage electric powertrain systems (BEVs and PHEVs) will account for 35% of automotive production worldwide.
The integration of Valeo Siemens eAutomotive will enable Valeo to:
- Accelerate its growth;
- Accelerate its technological roadmap to offer its customers increasingly high-performance solutions (new 800V silicon carbide-based technologies, co-development and co-production of a rare-earth-free electric motor with Renault and new bidirectional onboard chargers);
- Unlock major synergies, with an objective representing a total annual amount of 120 million euros (Rs 990 crore) by 2025. These synergies will be achieved progressively, with the full benefit delivered in 2025 (50% in 2023, 75% in 2024 and 100% in 2025).
With this integration, Valeo says it "aims to achieve annual sales growth of more than 12% (pro forma) for its Powertrain Systems business over the 2021–2025 period and to reach sales of more than 8.5 billion euros in 2025 (compared to pro forma sales of 5.4 billion euros in 2021), including roughly 7.5 billion euros in original equipment sales. Eighty percent of the original equipment sales objective for 2025 has already been booked."