Nidec to dissolve China, Europe e-axle JVs with Stellantis
Nidec plans to dissolve its China e-axle JV with Guangzhou Automobile Group and its European joint venture with Stellantis after the division posted an ¥87.7 billion loss in the fiscal half ending September. The e-axle unit was built through a 2014 Honda electronic component acquisition and a ¥100 billion Omron takeover in 2019.
1. JV Dissolution Plans
Nidec plans to break apart its China e-axle joint venture with Guangzhou Automobile Group and wind down its European e-axle partnership with Stellantis, with talks initiated only with the China partner and no discussions yet started in Europe.
2. Financial Performance and History
The e-axle unit recorded an ¥87.7 billion loss in the fiscal half ending September, reflecting contract and impairment losses; the division was expanded through a 2014 Honda electronic component acquisition and a ¥100 billion Omron automotive unit takeover in 2019.
3. Corporate Restructuring and Quality Review
President and CEO Mitsuya Kishida has launched a structural reform that includes dissolving loss-making businesses, reshuffling senior vice president and vice president roles across compliance, HR, performance, supply chain, accounting and sales, and establishing a quality inspection program uncovering unapproved design and process changes.
4. Implications for Stellantis
Stellantis will need to seek alternative e-axle suppliers or adjust its EV production plans as it navigates potential supply gaps and assesses cost and timing implications from the JV dissolution.