Tuesday, 7 February 2017
Hitachi and Honda set to motor together
The prospect of increased electric motor sales for electric vehicles has driven Hitachi and Honda into each other’s arms.
Hitachi Automotive Systems, Ltd., and Honda Motor Co. have signed a Memorandum of Understanding (MoU) with the aim of establishing 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.
Hitachi believes that 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 US and China, each with manufacturing and sales functions. Together with 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 says it 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.
Although the planned name of the JV has yet to be determined, it will be located in 2520 Takaba, Hitachinaka City, Ibaraki Prefecture. Its capital structure will be based on 5 billion yen with a planned date of establishment set for July 2017. Hitachi Automotive Systems’s investment will be based on 51 per cent and Honda Motor Co., Ltd. 49 per cent.
The definitive agreement for the creation of the joint venture company is planned for the end of March 2017.