Nidec to form a JV with GAC Components

GAC Components is a subsidiary of a major Chinese car manufacturer Guangzhou Automobile Group that has the sixth largest market share in the increasingly environmentally strict China. GAC Components mainly manufactures automobile interior parts, electric components, etc. for not only the EVs and PHEVs under the Guangzhou Automobile brand, which plays a significant role in the transition to EVs, but also joint ventures with Japanese car manufacturers. GAC Components and Nidec have agreed to collaborate to produce low-cost, high-efficiency traction motors for Guangzhou Automobile Group, a press release states. The new Joint Venture company will be called Guangzhou Nidec Auto Drive System Co., Ltd. (tentative), with its headquarters registered in Guanzhou, Guangdong Province, China. Nidec will hold 51%, leaving GAC Components with the remaining 49%. The execution of this Joint Venture contract is planned for between September and October 2019. (This period is subject to change based on the status of approval by individual competition regulatory authorities.)