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.
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