Bosch, Daimler To Forge JV For Electric Vehicles

The deal is the latest sign that automakers and their suppliers forge alliances to benefit from economies of scale and reap cost synergies, especially in the field of electric vehicles.

In pooling their competencies, the two companies aim to accelerate development advances in electric machines as well as to benefit from synergies. According to their letter of intent, joint production should start in 2012. It is envisioned that the electric motors developed will be used in Mercedes-Benz and smart electric vehicles from 2012. Subsequent sales to other automakers are to be handled by Bosch. The joint activities are planned to be located in the greater Stuttgart area and in Hildesheim, Northern Germany.

The Bosch Group is a leading supplier of technology and services. As a leading automotive supplier it has a high level of competence in developing and producing electric motors, which it is already manufacturing in series in Hildesheim.

The automotive manufacturer Daimler has built up 20 years of experience in the area of electric vehicles as well as in the key components electric motor and battery, giving it a comprehensive understanding of how results can be best achieved in this field.