Honda Motor Co. Ltd. and Hitachi Automotive Systems Ltd. signed 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 (EVs).
As reported, the two companies now will conduct formal discussions regarding the establishment of the new company.
Since Hitachi Automotive Systems first started selling motors for EVs in 1999, it has been refining its technological and product capabilities to develop high-output, lightweight and compact EV motors. The company says it has delivered a high volume of these motors to vehicle manufacturers globally 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 EV lineup as it continues to enhance its technological and production capabilities with respect to the motors that form the core component of EVs.
Going forward, with environmental conservation measures and regulations increasing on a global scale, the market for EVs is expected to continue to grow. Because of this, 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 EV system.
Subsidiary operations of the new Japan-based joint venture are planned for the U.S. 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.
Honda says it will continue to focus on the global promotion of EVs by using motors from the new company and the motors it currently manufactures itself in Japan.
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