The internal-combustion engine may have been declared obsolete roughly 47 times over the past decade, but apparently somebody forgot to tell Horse Powertrain.
The global powertrain supplier has opened a new North American headquarters in the Detroit area, bringing its portfolio of combustion, hybrid, plug-in hybrid, range-extender, transmission and electric-motor technology to the heart of America’s automotive industry.
And it isn’t just putting a brass plaque on a rented office door. Horse Powertrain says the new operation will create 32 positions across a range of business functions, adding to its existing operations in Europe, China and South America.
The location makes plenty of sense. Detroit remains home to a huge concentration of automakers and suppliers, and Horse Powertrain wants to become a technology partner for US manufacturers looking for alternatives to developing every component of a powertrain themselves.
That last part is important.
Horse Powertrain’s business model is based around what it calls powertrain-agnostic technology. In other words, it develops systems that can be adapted to different vehicle brands rather than being tied to a single automaker.
Its portfolio includes combustion engines, hybrid and plug-in hybrid systems, transmissions, power electronics and electric motors. The company also emphasizes pre-integrated powertrain systems designed to reduce the engineering complexity and capital investment required by automakers.
For manufacturers, that could be increasingly attractive.
The automotive industry has spent years pouring enormous sums into electrification while simultaneously discovering that consumers don’t always move through the vehicle market in neat little strategic-plan-shaped lines.
EV demand has grown, but hybrids and other electrified powertrains have also become increasingly important. That has left automakers trying to maintain multiple propulsion strategies without spending quite so much money developing each one independently.
Horse Powertrain’s pitch is essentially: You need a powertrain? We’ve got one.
That’s considerably easier than starting from a blank sheet of paper.
Detroit Is Still Where the Action Is
Horse Powertrain CEO Matias Giannini says North America is a key strategic market for the company, particularly because automakers here continue to offer consumers a diverse range of vehicle types and powertrains.
That diversity is precisely where the company sees an opportunity.
Horse Powertrain says it has more than 19,000 employees worldwide, more than 25 customers and more than 125 years of combined heritage behind its operations. Its expertise particularly centers on hybrid, plug-in hybrid and range-extended systems.
The Detroit office is intended to put that expertise much closer to the automakers Horse wants to serve.
Thomas Lewis, president of Horse Powertrain USA, is also a Michigan native and longtime automotive industry professional. He described opening the Detroit-area office as the next step toward directly supporting North American automakers and eventually expanding the company’s US business functions.
The company isn’t pretending this is the finished product, either. Horse Powertrain says it ultimately wants to establish a broader US presence and become a major participant in the North American automotive ecosystem.
There is an interesting bit of timing here.
Automakers are increasingly discovering that the future of transportation isn’t necessarily going to be one propulsion technology replacing another overnight. Instead, manufacturers may need combustion engines, hybrids, plug-in hybrids, range extenders and battery-electric vehicles sitting alongside one another for years to come.
That’s particularly true for larger vehicles, long-distance driving and markets where charging infrastructure or consumer preferences don’t line up neatly with an all-EV strategy.
Horse Powertrain is positioning itself directly in that middle ground. Its Detroit expansion is essentially a bet that the internal-combustion engine still has plenty of work to do, especially when combined with electrification. Rather than arguing about whether the future is gasoline or electric, Horse is selling the machinery needed for both.
And if automakers can buy those systems instead of spending billions developing every piece themselves, that’s potentially a pretty compelling proposition.
Horse Powertrain celebrated the Detroit-area opening with a ribbon-cutting ceremony involving the Michigan Economic Development Corporation, Detroit Regional Partnership and Southfield City Council, along with local officials and business leaders.
The symbolism is hard to miss: A company built around more than a century of engine and powertrain expertise is setting up shop in Detroit at a time when the industry is simultaneously chasing an electric future and rediscovering the usefulness of the humble gasoline engine.
Apparently, the engine isn’t dead. It just got a new office in Michigan.
