Daimler, the company behind Mercedes-Benz and Smart, has signed an agreement with Robert Bosch GmbH for a joint 50:50 venture on electric motors.
The agreements, which are still subject to the approval of the anti-trust authorities, will involve the establishment of a new company named EM-motive GmbH, which will develop and produce innovative traction motors for electric vehicles.
Its aim is to accelerate the development of the motors with production expected to commence at the start of 2012.
They will then be used in electric vehicles for both the Mercedes-Benz and Smart brands, starting with the Smart Fortwo Electric Drive, scheduled to go on sale in early 2012.
The new company will have its headquarters and manufacturing facilities in Hildesheim with 100 employees expected to start working for the joint venture in the fourth quarter of this year.