Hitachi Automotive and Honda establish joint venture
Hitachi Automotive Systems and Honda Motor Co. have established a joint venture company, Hitachi Automotive Electric Motor Systems. The new company, located on the premises of Hitachi Automotive Systems, will be used for the development, manufacture, and sales of motors for electric vehicles.
As announced on February 7, 2017, the two companies have conducted discussions based on a Memorandum of Understanding signed on February 3, and entered into a joint venture agreement on March 24 to make more tangible preparations to establish the new company. The newly established company will receive a financial grant from Ibaraki Prefecture as it has been recognized as a relevant project that "promotes the establishment of corporate head office functions" within the prefecture.
The new company will respond to the growing global demand from automakers for electric vehicle motors by developing competitive motors that combine the expertise of the two companies.