Honda and Hitachi Partner to Create Electric Vehicle Motors
Hitachi Automotive Systems and Honda Motor Company today announced the February 3rd signing of a Memorandum of Understanding (“MoU”) to establish a joint venture company for the development, manufacture and sales of motors for electric vehicles. The two companies now will now enter the stage of formal discussions as they work to establish the new company.
Hitachi Automotive Systems has been selling motors for electric vehicles since 1999, and has delivered a high volume of these motors to vehicle manufacturers in Japan and throughout the world. 1999 was also the year that Honda launched its first hybrid car, Insight, and since then has worked to continuously expand its portfolio of electrified vehicles.
The two companies have come together and signed the MoU with the intention of using the partnership between a vehicle manufacturer and a supplier to generate technological synergy and economies of scale that will give them a competitive advantage as the global market for electric vehicles continues to increase.
The new joint venture will be based in Japan, with subsidiary operations planned for the United States and People’s Republic of China, as well, each with manufacturing and sales functions. Honda says that this system will expand the global supply of motors by creating a quick response to demand from Honda and other manufacturers.
While pursuing this joint venture, Hitachi Automotive Systems will continue to maintain the business relationships it has with vehicle manufacturers that they supply motors to. Likewise, Honda will use motors from the new company in addition to the motors it currently manufactures itself in Japan.