New Delhi: Argentum Motors on Monday signed a memorandum of understanding with software solutions provider Dassault Systems for designing and engineering of engine components for global automotive Original Equipment Manufacturers (OEMs).

The collaboration would bolster Argentum from being a contract manufacturer of automobiles and components to also an engineering service provider for OEMs. Jointly set up by the two companies, the Centre of Excellence would leverage on Dassault’s partnership for providing software solutions to auto companies and Argentum’s manufacturing capacity.

“Globally, OEMs are increasingly engaging component companies in the design and development process. We do not just want to manufacture for international OEMs but also provid value added services to our customers,” said B.V.R. Subbu, Director, Argentum Motors Pvt Ltd, while signing the MoU. This would make Argentum a complete solution provider as it would be able to provide the conceptual design for the component, produce it, test the product and deliver it to the customer.

Powertrain solutions

Currently, Dassault has almost every automobile maker such as Toyota, Hyundai, Mercedez, Porsche buying its software for product lifecycle management solutions and under the new venture with Argentum Engineering Design (AED) it is aiming to provide powertrain solutions to various companies. AED, currently, employs 50 professionals and by the end of the year would have a headcount of 250.

“The Centre of Excellence would create a pool of trained persons who would be used by Argentum’s customers for providing powertrain solutions. In the next three to four years, we would be looking to train 700-800 people,” said S.D. Pradhan, CEO, AED.

On the revenue sharing arrangement, Subbu said that Argentum or its customers would pay Dassault licence or user fee for buying its software for their powertrain products. Declining to reveal specific names, he admitted that Argentum was in the process of meeting the powertrain requirements of three global OEMs.