German car manufacturer Daimler and supplier Bosch have signed an agreement in order to produce an electric engine.
The new agreement between the automaker and the supplier is a 50-50 percent joint venture (JV). With manufacturing facilities and main headquarters in Hildesheim, Germany, and the engineering site located in the Stuttgart area, the new joint venture will have a work force of around 100 employees, for start at least.
“It is extremly important that competence in this field is maintained in Germany. In joining forces with Bosch we have now teamed up with a long-standing partner, and are confident that this move will lead to outstanding results”, said Daimler’s chief environmental officer, Herbert Kohler.
The joint venture between Daimler and Bosch will be named EM-motive and it will produce electric motors for electric vehicles.
According to the current plans between the two companies, production of the new electric motors will start in 2012 and they will be installed in electric vehicles of both the Mercedes-Benz and Smart.
The JV will is targeted to produce more than 1 million electric motors by 2020.