Hi­tachi and Honda in JV to build elec­tric ve­hi­cles

The Witness - Wheels - - TRENDS -

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.

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