Nidec Terminates EV Drive Unit Joint Venture with GAC Group

[Company News] Japanese motor giant Nidec will terminate its joint venture with GAC Group in the field of electric vehicle drive systems.

Strategic Rationale: Exiting a Red Ocean Market to Focus on Structural Reform

Nidec CEO Mitsuya Kishida explicitly stated that the E-Axle business has become a fiercely competitive "red ocean," and the company intends to fully exit this segment. Automotive components account for approximately one-quarter of Nidec’s total sales, and the division has previously supplied global automakers including Toyota, Volkswagen, and General Motors.

Key Facts: Only One of Two Joint Ventures Is Being Terminated

Nidec currently operates two E-Axle joint ventures—one in China (with GAC Group) and another in Europe (with Stellantis). At this stage, exit negotiations have only commenced with the Chinese partner; discussions regarding the European joint venture have not yet begun. This move follows recent revelations of financial misconduct and product quality issues, underscoring the company's strategic retreat.