Groupe PSA and Punch Powertrain Expand Strategic Partnership in Electrification

• Agreement to establish second Joint Venture
• New Joint Venture to design, manufacture and supply state of the art components and sub-systems for the future generation of the electrified transmission (e-DCT [1])
• e-DCT will equip Groupe PSA’s Mild Hybrid Electric (MHEV) and Plug-in Hybrid Electric (PHEV) vehicles and carmakers globally

Groupe PSA and Punch Powertrain have signed an agreement to establish a second Joint Venture and expand their strategic partnership in the field of electrification, to contribute to fight against climate change.

Punch Powertrain holds majority control in the new Joint 61/39 Venture, which will design, manufacture, and supply Punch Powertrain’s breakthrough DT2 [2] dual clutch transmission for the industry’s next generation of mild hybrid electric (MHEV) and plug-in hybrid electric (PHEV) vehicles. The business will initially supply Groupe PSA’s global operations and aims to supply other vehicle manufacturers worldwide. The Joint Venture agreement is subject to customary regulatory approvals.

“Our clear manufacturing strategy is to have a vertical integration of components, particularly key technologies such as electrified powertrains. We have understood that the future is much more than reducing emissions. The challenge ahead of us is electrification at affordable cost, aligned with our raison d’être (Central Purpose)” said Olivier Bourges, Executive Vice President, Programs and Strategy and Member of the Managing Board.

“We are delighted to launch this second Joint Venture Agreement with Groupe PSA, Europe’s second largest car manufacturer,” said Jorge Solis, Chief Executive Officer, Punch Powertrain. “Over the past 45 years, Punch Powertrain has continuously pioneered innovative and cost-effective transmission technologies. This new venture will spearhead the industrialization of our next generation of transmissions for hybrid electric vehicles for Groupe PSA and other carmakers worldwide.”

Punch Powertrain DT2 48V and PHEV Dual Clutch Transmission

Punch Powertrain will contribute its DT2-related business unit, including world-class engineering, manufacturing, and support functions to the new entity which is expected to be operational by the third quarter 2020. Punch Powertrain will also transfer its current DT2- related facilities in Sint-Truiden, Belgium, and Eindhoven, the Netherlands. In turn, Groupe PSA will make a cash investment in the Joint Venture.

New Joint Venture, “Punch Powertrain PSA e-transmissions”, will supply Punch Powertrain’s innovative, ultra-efficient and compact automatic transmissions. Known as the DT2, this cost-efficient dual clutch transmission is the first in the industry to integrate an electric motor in a mild hybrid electric vehicle.

This latest Joint Venture will supply one of the industry’s first 48V solutions to equip mild hybrid electric vehicles (MHEV), resulting in significant fuel savings and reduction in CO2 emissions, compared to regular internal combustion engine powered vehicles.

A high voltage variant of the DT2 is designed for plug-in hybrid electric vehicles (PHEV) and allows full electrically powered driving.

In April 2019 Groupe PSA and Punch Powertrain originally signed an agreement to establish their first Joint Venture “Punch Powertrain PSA e-transmissions assembly”. This Joint Venture will assemble the future generation of electrified transmissions (e-DCT) at Groupe PSA ’s facility in Metz, France, starting in 2022. This breakthrough transmission will equip Groupe PSA’s next generation of hybrid vehicles.

[1]  e-DCT ; electrified Dual Clutch Transmission

[2] Dual Clutch Transmission by Punch Powertrain, available in 48V, plug-in hybrid or conventional variants.

Groupe PSA and Punch Powertrain are negotiating terms of a Joint Venture agreement for the Group’s future electrified dual-clutch transmissions

• On September 27, Groupe PSA and Punch Powertrain announce their intention to sign a joint venture agreement, named “Punch Powertrain PSA e-transmissions”, to produce the future generation of the electrified transmission (e-DCT), starting in 2022.

The Metz plant will have an annual production capacity of 600,000 e-DCTs. In preparation for production, Punch Powertrain will carry out industrialization and design of the state-of-the-art production line. 

 electrified Dual-Clutch Transmission (e-DCT)

Informations on the future Joint Venture « Punch Powertrain PSA e-transmissions »:
Headquarters:           Metz (Greater East Region) France
R&D facilities:           Punch Powertrain in Belgium and Netherlands
Production facilites : Groupe PSA – Metz (Moselle) France

Closing of such transaction remains subject to antitrust clearance and employee representative consultation.

This electrified Dual Clutch Transmission (e-DCT) will be:

• Designed and developed in Punch Powertrain research centers in Belgium and the Netherlands
• Manufactured at Groupe PSA’s plant in Metz (Greater East Region), chosen for its cost-efficiency and recognized for its expertise in gearbox production.

With an excellent level of performance, this gearbox will save up to 15% fuel consumption and reduce emissions in the city thanks to the use of ZEV mode in heavy traffic conditions. This e-DCT technology will set the benchmark for dual-clutch transmissions in the passenger car and Light Commercial Vehicle (LCV) segments.

With its revolutionary design, the e-DCT gearbox with a 48V configuration, will equip Groupe PSA’s future Mild Hybrid Electric Vehicles (MHEV).

Groupe PSA selects Punch Powertrain technology for its future electrified transmission systems

• Punch Powertrain has been selected to supply its newest generation of patented e-DCT systems by 2022, as part of Groupe PSA’s electrification push.
• This electrified Dual Clutch Transmission – hybrid DT2 – with a 48V motor will equip Mild Hybrid Electric Vehicles.
• The two companies are entering into discussions about manufacturing the technology at one of Groupe PSA’s plants and are exploring the possibility of extending the partnership.

electrified Dual Clutch Transmission – hybrid DT2

Groupe PSA has been actively accelerating its shift to electrified vehicles (Mild-hybrid, MHEV), Electric Vehicles (EV) and Plug-in Hybrid (PHEV) with the aim of developing an electrified offering covering 100% of its range by 2025.

In this context, Groupe PSA’s decision to select Punch Powertrain as the supplier of its next generation electrified transmission systems is highly strategic.

Best in class Dual Clutch Transmission

Groupe PSA’s main reason for cooperating with Punch Powertrain is to leverage its cutting-edge and patented dual clutch transmission design, which allows for fewer components, and hence a lighter and more compact transmission system. In addition, it delivers outstanding performance and a very favorable fuel economy at a competitive cost. The next generation of this design, with a 48V motor configuration, will be installed by Groupe PSA in its vehicles.

This DCT technology establishes a new reference point for all competing DCTs in the passenger car and light commercial vehicle segments, given its outstanding characteristics.

Punch Powertrain, strong customer focus and big investment

Punch Powertrain has carried out major investments to meet the requirements of a project of this magnitude, including the acquisition of the power electronics expert Apojee.

Punch Powertrain’s international growth strategy

The agreement with Groupe PSA is a major step for Punch Powertrain and is in line with its strategic vision of becoming a global automotive supplier. To secure sustainable and continuous growth, the company has focused on two objectives: expanding its product portfolio and establishing a worldwide customer base in global markets.

With Groupe PSA as its first large European customer, Punch Powertrain is meeting its second objective: securing its position in Europe and expanding its global footprint.