Siemens VDO Automotive Corp. has signed an agreement to acquire Ballard Power Systems Inc.'s electric drive business in Dearborn, MI. The unit develops and manufactures electric drive technology for fuel cell vehicles.

Siemens VDO group vice president Klaus Egger said the acquisition “elevates Siemens VDO's hybrid business to a new dimension” and places the company in a better position to capitalize on a global hybrid electric vehicle market expected to be worth some $14 billion by 2015. When the acquisition is completed, the Dearborn location will serve as Siemens VDO's North American Center of Expertise for the advancement of power electronics, motor design and systems for electrical drives for customer hybrid and fuel cell vehicle applications.