Groupe PSA, Punch Powertrain Expand EV JV

The new firm should be operational by Q3 2020.

Groupe PSA and Punch Powertrain signed an agreement to establish a second Joint Venture and expand their strategic electrification partnership, to contribute to fight against climate change. (Groupe PSA Q1 2020 Revenue -15% at €15.2 Billion, PSA Group – Lease New Plug-In Hybrid and EVs at Free2move, Mobility Roll of the Die – FCA and PSA Merger)

Punch Powertrain holds majority control (61/39) in the new Joint Venture, which will design, manufacture, and supply Punch Powertrain’s DT2 dual clutch transmission for the next generation of mild hybrid electric (MHEV) and plug-in hybrid electric (PHEV) vehicles.

Punch Powertrain will contribute its DT2-related business unit, including engineering, manufacturing, and support functions to the new entity which is expected to be operational by the third quarter 2020. Punch Powertrain will also transfer its current DT2- related facilities in Sint-Truiden, Belgium, and Eindhoven, the Netherlands. In turn, Groupe PSA will make a cash investment in the Joint Venture.

The business will initially supply Groupe PSA’s global operations, but aims to supply other vehicle manufacturers worldwide. The Joint Venture agreement is subject to customary regulatory approvals.

In April 2019 Groupe PSA and Punch Powertrain originally signed an agreement to establish their first Joint Venture “Punch Powertrain PSA e-transmissions assembly.” This Joint Venture will assemble the future generation of electrified transmissions (e-DCT) at Groupe PSA ’s facility in Metz, France, starting in 2022. This breakthrough transmission will equip Groupe PSA’s next generation of hybrid vehicles.