Dana TM4 | Hydro-Québec gets rid of the wheel motor

After its high voltage test laboratory, the in-wheel motor. Hydro-Québec wants to sell its remaining shares in Dana TM4 – its joint venture with multinational Dana which specializes in the electrification of transportation.

Faced with the colossal investments that await the state-owned company over the next decade, the state-owned company has decided to exercise its option to sell the 45% stake in its partnership with the American equipment manufacturer.

“Our action plan is very ambitious and to achieve it, we must focus on our core business and the investments of around 150 to 180 billion that are required,” says Maxime Aucoin, executive vice-president, strategies. and finances, from Hydro-Québec.

Since selling a majority stake (55%) to Dana for 165 million in 2018, the state-owned company has re-injected more than 200 million into the joint venture to avoid dilution. Over the past six years, Dana TM4 has made several acquisitions in addition to opening international factories, which required significant investments from both partners.

In addition to Boucherville, in the southern suburbs of Montreal, the electric motor specialist is present in the United States, Italy, India, China and soon in Sweden. Dana TM4 designs and manufactures electric motors, generators and control systems for passenger, commercial, recreational and sports vehicles, among others.

Hydro-Québec affirms that its withdrawal from Dana TM4 “will have no impact on the maintenance of jobs” in Quebec. In Boucherville, the joint venture’s workforce has more than doubled since 2018 to more than 300 people. The entity’s facilities have also been expanded.

We will have to wait before having an idea of ​​the amount that will be obtained by the state corporation. Both parties must agree on the “fair market value” of Dana TM4.

This is a second transfer in as many weeks which has been announced by Hydro-Québec. On April 26, the state-owned company announced its intention to sell its high voltage testing laboratory to Hitachi Energy, one of its main suppliers. This transfer must be formalized in 2027. The laboratory will be integrated by Hitachi Energy Canada, located nearby.

Founded in 1904, Dana generated revenues of US$10.6 billion last year in addition to generating net profits of US$38 million. The automotive supplier has more than 42,000 employees around the world and does business with giants like Ford, General Motors, Nissan, Volvo and Toyota.