Hitachi Automotive Systems and Honda Sign MoU Aiming to Establish a Joint Venture Company for Electric Vehicle Motors
February 07 2017 - 1:40AM
JCN Newswire (English)
Hitachi Automotive Systems, Ltd., and Honda Motor Co., Ltd.,
today announced the signing of a Memorandum of Understanding
("MoU") on Feb. 3, aiming to establish a joint venture company for
the development, manufacture and sales of motors for electric
vehicles. The two companies now will conduct formal discussions
regarding the establishment of the new company.
Since Hitachi Automotive Systems first started selling motors for
electric vehicles in 1999, it has been refining its technological
and product capabilities to develop high-output, lightweight and
compact electric vehicle motors. The company has delivered a high
volume of these motors to vehicle manufacturers in Japan and
throughout the world, and has earned high praise throughout the
industry for the performance of these products and its production
technology.
Since 1999, when Honda launched its first hybrid car, Insight, the
company has focused on expanding its electric vehicle line-up as it
continues to enhance its technological and production capabilities
with respect to the motors that form the core component of electric
vehicles.
Going forward, 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 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.
In parallel to the efforts of the new company, Hitachi Automotive
Systems will continue to promote its business operations by
maintaining the business relationships it has with vehicle
manufacturers that receive their supply of motors from the company.
Moreover, 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.
Further details of the joint venture are currently under discussion
by the two companies. The following are items that are currently
part of the plan:
1. Overview of the Joint Venture Company (planned)
Name of company: To be determined
Location: 2520 Takaba, Hitachinaka City, Ibaraki Prefecture
Representative: To be determined
Business: Development, manufacture and sales of motors for
electric vehicles
Capital: 5 billion yen
Planned date of establishment: July 2017
Investment ratio: Hitachi Automotive Systems, Ltd. 51%
Honda Motor Co., Ltd. 49%
2. Future schedule
The signing of the definitive agreement for the establishment of
the joint venture company is planned for the end of March 2017.
About Hitachi Automotive Systems, Ltd.
Hitachi Automotive Systems, Ltd. is a wholly owned subsidiary of
Hitachi, Ltd., headquartered in Tokyo, Japan. The company is
engaged in the development, manufacture, sales and services of
automotive components, transportation related components,
industrial machines and systems, and offers a wide range of
automotive systems including engine management systems, electric
power train systems, drive control systems and car information
systems. For more information, please visit the company's website
at http://www.hitachi-automotive.co.jp/en/.
About Honda
Honda Motor Co., Ltd. (TSE:7267/NYSE:HMC/LSE:HNDA) is one of the
leading manufacturers of automobiles and power products and the
largest manufacture of motorcycles in the world. Honda has always
sought to provide genuine satisfaction to people worldwide. The
result is more than 120 manufacturing facilities in 30 countries
worldwide, producing a wide range of products, including
motorcycles, ATVs, generators, marine engines, lawn and garden
equipment and automobiles that bring the company into contact with
over 19 million customers annually. For more information, please
visit http://world.honda.com.
Source: Honda
Contact:
Honda
Media Inquiries
corporate_pr@hm.honda.co.jp
+81-3-5412-1512
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