Hitachi, Honda JV to build and sell EV engines
A joint venture company which will develop, manufacture and sell electric vehicle motors will be formed by Hitachi Automotive Systems and Honda.
The two companies now will conduct formal discussions regarding the establishment of the new company, which will see both companies invest AUD$58.4 million.
With environmental conservation measures and regulations increasing on a global scale, the market for electric vehicles is expected to continue to grow.
Honda Motor president, chief executive and representative director Takahiro Hachigo, right, shakes hands with Hitachi Automotive Systems president and chief executive Hideki Seki.
Based on this direction, the two companies will use each other’s expertise to generate technological synergy and economies of scale that will strengthen their competitive advantage.
Subsidiary operations of the new Japan-based joint venture are planned for the United States and People’s Republic of China, each with manufacturing and sales functions.
Together with the establishment of these operations, the new company will expand the global supply of motors by creating a robust response to demand from Honda and other vehicle manufacturers.
Honda will continue to focus on the global promotion of electric vehicles by using motors from the new company as well as the motors it currently manufactures itself in Japan.
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