--- title: "Nidec to withdraw from e-axle business" type: "News" locale: "en" url: "https://longbridge.com/en/news/286763889.md" description: "Nidec plans to exit its e-axle business in China and Europe, dissolving joint ventures with GAC and Stellantis due to intense competition. CEO Mitsuya Kishida described the sector as a 'red ocean.' The company reported significant losses in this division, totaling 87.7 billion yen in the first half of the fiscal year, prompting a strategic shift towards structural reform." datetime: "2026-05-18T11:30:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286763889.md) - [en](https://longbridge.com/en/news/286763889.md) - [zh-HK](https://longbridge.com/zh-HK/news/286763889.md) --- # Nidec to withdraw from e-axle business Nidec’s e-axle business primarily consists of two joint ventures—one with GAC in China and another with Stellantis in Europe. In China, however, Nidec is now hitting the brakes. President and CEO Mitsuya Kishida told _Nikkei Asia_: “We want to withdraw from the e-axle business, which has become a red ocean.” The term ‘red ocean’ refers to an oversaturated industry characterised by fierce competition. Nidec is reportedly already in negotiations with its Chinese joint venture partner GAC regarding its exit. “Although the specific approach has not been decided, we will dissolve both joint ventures,” Kishida told _Nikkei Asia_. Nidec has not yet initiated discussions with its European partner Stellantis, though this appears to be only a matter of time. The Chinese joint venture, Guangzhou Nidec Auto Drive System, headquartered in Guangzhou, was founded in 2019 and is owned 51% by Nidec and 49% by GAC’s subsidiary, GAC Components. At its inception, both parties stated that the initial focus would be on producing e-axles for GAC, though they also aimed to supply third-party customers. The motors were to be developed by engineers in China, while leveraging GAC’s procurement capabilities. At the end of 2022, Stellantis added e-axle production in France by converting its factory in Trémery. In what was once the group’s largest diesel engine plant, the production of electric motors began three and a half years ago under the responsibility of Nidec’s joint venture, Emotors. By 2024, the production capacity was expected to exceed 1 million units per year, according to the announcement at the time. As _Nikkei Asia_ reports, e-axles were once a flagship project of company founder Shigenobu Nagamori. Against this backdrop, Nidec acquired a Honda subsidiary specialising in electronic component control in 2014 and took over Omron’s automotive electronics business in 2019. The now-outlined withdrawal from this sector represents, according to _Nikkei_, ‘strategic shift toward structural reform.’ The division’s losses have recently been substantial: for the first half of the current fiscal year (which ended in Japan at the end of September), Nidec reported a loss of 87.7 billion yen (approximately 470 million euros) in its e-axle business. This includes provisions for impending contract losses and impairments on production facilities. asia.nikkei.com ### Related Stocks - [6594.JP](https://longbridge.com/en/quote/6594.JP.md) - [STLA.US](https://longbridge.com/en/quote/STLA.US.md) - [601238.CN](https://longbridge.com/en/quote/601238.CN.md) - [NJDCY.US](https://longbridge.com/en/quote/NJDCY.US.md) - [02238.HK](https://longbridge.com/en/quote/02238.HK.md) - [7267.JP](https://longbridge.com/en/quote/7267.JP.md) - [HMC.US](https://longbridge.com/en/quote/HMC.US.md) - [6645.JP](https://longbridge.com/en/quote/6645.JP.md) - [OMRNY.US](https://longbridge.com/en/quote/OMRNY.US.md) ## Related News & Research - [Stellantis to push US revival, brands and Chinese deals in high-stakes pitch to investors](https://longbridge.com/en/news/286860768.md) - [Jeep maker reveals plans for a new ‘groundbreaking’ EV that will start at under $18,000](https://longbridge.com/en/news/286944682.md) - [07:23 ETaiMotive announces aiWare5, delivering unrivalled flexibility and scalability for L2+ to L4 automotive AI workloads](https://longbridge.com/en/news/286407761.md) - [Stellantis to focus investment on Jeep, Ram, Peugeot, Fiat](https://longbridge.com/en/news/286404017.md) - [Stellantis N.V. (STLA) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit](https://longbridge.com/en/news/286607688.md)