These agreements are still subject to the approval of the antitrust authorities. The new company, which is to be set up under the name EM-motive GmbH, will develop, produce, and market innovative electric motors – also known as traction motors – for electric vehicles.

The company will have its headquarters and manufacturing facilities in Hildesheim, Germany and the joint venture's engineering site will be located close to the parent companies in the Stuttgart area.

Some 100 employees are expected to start working for the joint venture in the fourth quarter of this year. EM-motive GmbH will be headed up by two directors of equal rank, one from each partner company.

According to Prof. Dr. Herbert Kohler, Vice President e-drive & Seite 2 Future Mobility in Group Research & Advanced Engineering and Chief Environmental Officer of Daimler AG: "Like lithium-ion batteries, electric motors are key components for our electric vehicles. It is extremely 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."

Wolf-Henning Scheider, the member of the board of manage­ment of Robert Bosch GmbH responsible for the Chassis Systems Control, Electrical Drives, and Starter Motors and Generators divisions, says: “This alliance is an investment in securing the future of the European automotive industry. It is also a perfect addition to our portfolio of electric motors for all our customers”.