NSK and Thyssenkrupp have signed a memorandum of understanding (MoU) to explore a potential joint venture between their subsidiaries, NSK Steering and Thyssenkrupp Automotive. Both companies are now entering an assessment phase before taking a decision on any future collaboration before the end of 2022.
Steering systems from NSK centre on products such as lightweight and compact electric power steering (EPS), manual steering columns with adjustment capability and effective energy absorption features, and lightweight joints and shafts offering integrated functions.
The steering divisions of both companies could combine their engineering, production and commercial capabilities, enabling the joint venture to meet the broad and highly technological needs of global automotive customers. It would also allow the combined entity to compete more effectively in the global steering industry.
Martina Merz, CEO of Thyssenkrupp explained, “Our clear goal is to lead all of our businesses to a top-three position in the market. Where it makes technological and strategic sense, we are happy to do this with strong partners at our side. In the automotive business in particular, size and economies of scale are key factors for achieving success in global markets. We’re already in an excellent position today with our automotive businesses. A collaboration between our automotive segment and NSK Steering could help us to further strengthen and expand this position.”
With the signed MoU, both companies have agreed on a non-binding assessment phase of the relevant businesses without any preconceived outcomes. A decision on a possible cooperation model will be taken by the end of the year.