L&T Technology Services Strikes €45M Partnership with FORVIA for Clean Mobility Division

On May 2, 2024, L&T Technology Services (LTTS) informed the stock exchanges that the company had signed a strategic partnership with FORVIA. The partnership represents an approximately €45 million contract for Engineering development activities for the benefit of its Clean Mobility division.

As part of this five-year partnership, approximately 300 engineers from FORVIA’s Augsburg

(Germany) and Bangalore sites have transferred to L&T Technology Services. This represents a 95% transfer success rate, securing the skills of these teams who will develop internal combustion engine-related engineering activities from within L&T Technology Services.

Under the leadership of LTTS, engineers remain dedicated to FORVIA’s operations from their existing locations, ensuring smooth collaboration and ongoing customer support for Digital PLM initiatives. FORVIA navigates the changing automotive landscape, prioritising ultra-low emissions while upholding top-notch engineering assistance and sustaining job opportunities.

The collaboration will deliver engineering services for FORVIA. Additionally, it will secure the career path of transferred employees and enrich their skillsets with exposure to LTTS’ extensive portfolio. A key part of the agreement is FORVIA’s capacity to train and reskill these engineers, who, supported by the LTTS Global Engineering Academy, will be repositioned over time to work in other fields within the LTTS commercial network.

Commenting on this partnership, the CEO and Managing Director of L&T Technology Services, Amit Chadha, “Our collaboration with FORVIA underscores our proficiency in the transportation and automotive industry, while simultaneously reinforcing our dedication to spearheading progress in the field of traditional engine technologies and new-age digital transformation for ultra-low emissions and clean mobility.”

He further added, “This groundbreaking partnership serves as a testament to our sophisticated capabilities, enabling FORVIA to maintain and strengthen its industry leadership.”

The CEO of FORVIA, Patrick Koller, said, “L&T Technology Services is a company that shares our commitment to innovation and quality. This strategic partnership shows how we are committed to protecting our leadership in the ultra-low emission business and employee interests in a changing environment. As one of the world’s leading engineering service providers, LTTS is the ideal partner to ensure FORVIA secures key competencies in the energy transition context.”

On May 2, 2024, the share price of L&T Technology Services Ltd opened at ₹4,650.95, touching the day’s high at ₹4,660.00, as of 12:27 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.