Nidec, a prominent player in the electronics and motor industry, and Embraer, a leading aerospace manufacturer based in Brazil, made an announcement this Sunday about their collaborative venture - a brand-new entity called Nidec Aerospace. This development marks a significant step for both companies in their endeavors towards the fast-evolving field of flying cars. The newly formed company will have its headquarters stationed in St. Louis, United States.
The new venture will not only bring together the technological prowess and industry experience of both Nidec and Embraer but will also take advantage of the existing manufacturing facilities owned by both companies in Brazil and Mexico. This strategic decision allows the new entity to hit the ground running, leveraging the operational resources from both firms to start producing parts for aerial vehicles efficiently.
In terms of the ownership structure of Nidec Aerospace, Nidec will hold a majority stake of 51%, leaving the remaining 49% to Embraer. This structure signifies a substantial investment by Nidec, underlining the company's confidence in the burgeoning market of flying cars and the potential of their joint venture with Embraer.
While the official announcement did not disclose any details concerning the capital invested in the new venture, a report from Nikkei Shimbun suggests a substantial commitment to the research and development domain. Over the next five years, Nidec Aerospace is expected to channel approximately $141.02 million (equivalent to 20 billion yen) into R&D. This planned investment indicates a forward-looking approach by the company, underlining the importance of innovation and technical advancements in the race towards viable and efficient flying car technology.