Montréal, July 31, 2019
Hydro-Québec and partner Dana invest to strengthen their leadership position in electric powertrains
Hydro-Québec announces that the company has invested $85 million to secure the growth of TM4, now called Dana TM4, and to ensure its leadership position in the electric powertrain sector. Since June 2018, Hydro-Québec has held a 45% interest in subsidiary Dana TM4 as part of a strategic partnership with Dana Incorporated.
This $85 million investment will allow Hydro-Québec to maintain its 45% interest in Dana TM4, and adds the following strategic relationships:
- Dana TM4 will hold 100% of Chinese company Dana Electric Motor Co. Ltd , formerly called Prestolite E-Propulsion Systems (PEPS), in which Dana TM4 previously held a 50% interest. Dana Electric Motor Co. manufactures and markets electric powertrain systems, particularly for buses and trucks. This transaction will enable Dana TM4 to optimize its operations and ensure the development of its activities in China, the fastest-growing market in terms of transportation electrification.
- Dana TM4 will also integrate the activities of electric motor company SME, an Italian company which has developed a range of electric motors and controls for a wide range of off-highway electric vehicle applications, including material handling, agriculture, construction, and automated-guided vehicles. SME low-voltage systems are a perfect complement to the DanaTM4 high-voltage product line. This investment puts Dana TM4 in a position to offer electric powertrain systems for all types of land vehicles, including light vehicles (cars and pickups), commercial vehicles (buses and trucks), and off-highway vehicles (construction, mining, and lift trucks).
“With the investments we are making today, our partnership with Dana will continue to grow and we will be able to take advantage of all the global opportunities market related to transportation electrification. Our goal continues to be creating wealth in Québec while promoting our expertise in transportation electrification globally and thus contributing to the energy transition,” noted Hydro-Québec President and CEO Éric Martel.
“Hydro-Québec’s experience in electrification has made them a strong partner as our customers continue to expand their electric vehicle offerings. Our Dana TM4 joint venture enables us to offer a complete portfolio of technologies to support all three of the major mobility markets and we look forward to continuing our partnership,” said James Kamsickas, president and CEO of Dana Incorporated.
Economic benefits for Québec
One year after it was formed, the strategic partnership between Dana and Hydro-Québec has generated many economic benefits for Québec, in particular the creation of some 30 new high-quality jobs in Boucherville. Approximately 30 additional jobs are expected in the coming months. Dana TM4 sales have also increased 40% compared with last year due to the global presence of Dana’s sales and service network.