Honda and Hitachi Automotive combine operations to create new Japanese mega supplier
In an agreement made on October 30, Honda and Hitachi Automotive announced that they will combine operations to create a Japanese mega supplier. According to the agreement, Honda will wholly acquire Keihin, Showa, and Nissin and establish a merger company that will be named Hitachi Automotive Systems. Hitachi will own 66.6% of the stock in the new company, while Honda will own 33.4%.
The companies state that benefits will accrue to all the merger companies, saying "The strengths of each company will be integrated to create an independent global mega supplier that provides globally competitive solutions." Resources will reportedly be available to realize improved technologies in powertrains (electric and internal combustion engines), advanced chassis, and automated driving (AD)/advanced driver-assistance system (ADAS) in CASE areas. Honda and Hitachi say they will "secure a strong development partner to enhance their automotive business." The merger is also expected to leverage the leadership position of Keihin, Showa, and Nissin’s motorcycle business.