Daimler AG And Bosch Announce Electric Vehicle Venture

BERLIN (AP) — German automaker Daimler AG and parts manufacturer Robert Bosch GmbH say they are forming a joint venture to develop and produce motors for all-electric vehicles in Europe.

The companies said in a joint press release Tuesday they had signed a letter of intent to establish the 50-50 joint venture that should be concluded in the first half of the year.

The companies say they aim to accelerate development of electric motors and start joint production by 2012.

The motors are to be used in Mercedes-Benz and Smart electric vehicles, and Bosch will handle sales to other automakers.

The joint activities will be located in the greater Stuttgart area and in Hildesheim.