This $85 million investment will allow Hydro-Quebec 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 Quebec while promoting our expertise in transportation electrification globally and thus contributing to the energy transition, noted Hydro-Quebec President and CEO Éric Martel.
Hydro-Quebec'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 Quebec
One year after it was formed, the strategic partnership between Dana and Hydro-Quebec has generated many economic benefits for Quebec, 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.