TM4 will become Dana's source for electric components, following the creation of the $127 million joint venture, while Hydro-Québec will maintain a 45% interest in TM4.
TM4 designs and manufactures motors, power inverters, and control systems for electric vehicles, offering a complementary portfolio to Dana's electric gearboxes and thermal-management technologies for batteries, motors, and inverters. The transaction establishes Dana as a supplier capable of full e-Drive design, engineering, and manufacturing capabilities – offering electro-mechanical propulsion solutions to each of its end markets.
TM4 was founded in 1998 by Hydro-Québec, Canada's largest electricity producer and one of the world's largest hydroelectric power producers. TM4 operates a technology and advanced manufacturing facility in Boucherville, Québec. Boucherville will remain a center of excellence, with TM4's current management team and 130 employees remaining in place.
Dana supports the passenger vehicle, commercial truck, and off-highway markets, as well as industrial and stationary equipment applications.
Jim Kamsickas, Dana president and CEO, said, "This joint venture brings together a world leader in mechanical power conveyance and thermal-management technology with an experienced manufacturer of electric motors and inverters to offer a broad range of hybrid and electric vehicle solutions for our customers across all three of our end markets." "Transportation electrification is at a turning point. In this context, Hydro-Québec has initiated a rigorous process to identify the winning conditions that will allow TM4 to reach its full potential," said Éric Martel, president and CEO of Hydro-Québec. "We wanted to join an industrial partner to accelerate TM4's market access to become a global leader, to the benefit of all Quebecers. This transaction will strengthen the activities of TM4 in Quebec."
Kamsickas added, "Through this partnership, TM4 becomes a pillar in Dana's e-Propulsion business. The company has an exceptionally talented team that has demonstrated a commitment to delivering world-class products and services, and we are excited about working with Hydro-Québec to profitably grow the business by providing our customers fully integrated, turnkey driveline solutions."