The JV, Valeo-Siemens eAutomotive, was established in 2016 to develop and sell electric motors, axles and powertrain electronics. Valeo said in February that it would buy the Siemens stake at a cost of 277 million euros ($288 million), increasing its net debt by 741 million euros.
The venture has been a money-loser, but Valeo CEO Christophe Perillat says he expects it to reach profitability at some point this year.
He said he expected to reach synergies of 120 million euros a year by 2025, by combining its high-voltage activities with Valeo’s longtime strength in 48-volt mild hybrid components.
“The technologies and the competencies for the two technologies are extremely close to each other, so to be prepared for a huge acceleration of high-voltage electrification, I can count on the people, the expertise and the knowledge that today is focused on low-voltage,” Perillat told Automotive News Europe in a recent interview. “It's going to be easy for me to put them under one roof and benefit from a scale effect.”
Valeo said last month that it had exceeded its target for the joint venture of 4 billion euros in orders in 2021-22.