Hitachi and Honda in JV to build electric vehicles
TOKYO — Hitachi Automotive Systems and Honda Motors has signed of a memorandum of understanding to establish a joint venture company for the development, manufacture and sales of motors for electric vehicles.
The two companies will now conduct formal discussions regarding the establishment of the new company running parralel to their existing electric vehicle businesses, both of which date back to 1999.
With environmental conservation measures and regulations increasing on a global scale, the market for electric vehicles is expected to continue to grow. Based on this direction, the two companies signed the MoU with the aim of using the collaboration between a vehicle manufacturer and supplier to generate technological synergy and economies of scale that will strengthen their competitive advantage and business foundation for the motors at the core of an electric vehicle system. 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 these operations, the new company said it plans to expand the global supply of electric motors by creating a robust response to demand from other manufacturers.