Feb 07, 2017 15:40 JST

Source: Honda Motor Co, Ltd

Hitachi Automotive Systems and Honda Sign MoU Aiming to Establish a Joint Venture Company for Electric Vehicle Motors

TOKYO, Feb 07, 2017 - (JCN Newswire) - 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/.

Contact:
Honda
Media Inquiries
corporate_pr@hm.honda.co.jp
+81-3-5412-1512
Source: Honda Motor Co, Ltd
Sectors: Automotive

Copyright ©2024 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release


Nissan and Honda to start feasibility study of strategic partnership
March 18 2024 11:14 JST
 
Honda Presents World Premiere of Production Model of "CR-V e:FCEV" at H2 & FC EXPO Tokyo
March 01 2024 20:30 JST
 
HRC Enters CR ELECTRIC PROTO in International Electric Moto Racing Series
February 02 2024 18:13 JST
 
Honda to Make Organizational Changes (Effective April 1, 2024) to Further Accelerate the Transformation toward Electrification Business
January 22 2024 18:15 JST
 
Honda: Ricky Brabec Claims Second Victory at Dakar Rally 2024
January 22 2024 10:10 JST
 
Honda 2024 Motorsports Program Overview
January 19 2024 13:46 JST
 
Honda Begins Production of All-new BF350 Large-size Outboard Motor Equipped with V8 350-Horsepower Engine
January 15 2024 08:00 JST
 
Honda Presents World Premiere of the "Honda 0 Series" Represented by Two New Global EV Concept Models at CES 2024
January 10 2024 12:04 JST
 
Honda, Tokuyama, and Mitsubishi Corporation to Conduct Joint Demonstration of Decarbonizing Data Center Using By-product Hydrogen and Stationary Fuel Cell Power Station designed to Reuse Fuel Cell Systems from FCEVs
December 25 2023 11:08 JST
 
Isuzu, Honda Begin Demonstration Testing Today of Fuel Cell-Powered Heavy-duty Truck on Public Roads in Japan
December 25 2023 10:24 JST
 
More Press release >>

Latest Press Release


More Latest Release >>