In pooling their competencies, the two companies aim to accelerate development advances in electric machines as well as to benefit from synergies. According to their letter of intent, joint production should start in 2012. The motors produced by the JV will first be used for vehicles of Daimler's brands Mercedes-Benz and Smart. Later, Bosch will have the right to handle subsequent sales to other automakers. The joint activities are planned to be located in the greater Stuttgart area as well as in Hildesheim, Northern Germany.
With the move, Bosch expands its long-standing partnership with Daimler. Observers however noted that the move brings Bosch into a greater dependence from the luxury car maker.