On February 7, local time, Hitachi Automotive Systems Co., Ltd. and Honda Motor Co., Ltd. announced that they had signed a memorandum of understanding on February 3. The two parties will establish a joint venture to produce and sell electric vehicle motors. The two companies will formally negotiate on matters related to the new company and plan to sign a final agreement at the end of March 2017.
The statement pointed out that in view of the growing electric vehicle market, the two companies signed a memorandum of understanding to use the cooperation between the two parties to achieve technological synergy, to form economies of scale and to strengthen the competitive edge of the two parties in the electric vehicle market.
In addition, the statement also stated that the joint venture plans to establish subsidiaries in the United States and China, and the subsidiaries will also have production and sales functions. Upon completion, the new joint venture and its subsidiaries will respond positively to the motor needs of Honda and other automakers.
At the same time as the establishment of a new joint venture, Hitachi Automotive Systems will continue to advance its motor business and maintain a cooperative relationship with existing car customers. In addition, in addition to its own electric motors, Honda will also use electric motors produced by the new company to promote electric vehicles around the world.
Hitachi Automotive Systems began selling electric vehicle motors as early as 1999. Since then, it has been working to improve its technology and product capabilities to produce electric vehicles with high output, light weight and small size. Hitachi Automotive's electric vehicle motor customers are all over the world, and its high-performance products and production technology are widely acclaimed in the industry. Also in 1999, Honda launched the first hybrid car Insight. While Honda is actively expanding its electric vehicle product line, Honda is also concerned about the technology and production capacity of its own electric vehicle motor.
The statement pointed out that many details of the joint venture company are still under discussion. The current plan is as follows:
Name of joint venture company: to be determined
Company representative: to be determined
Business area: R&D, production and sales of electric vehicle motors
Fund: 5 billion yen
Planned date of establishment: July 2017
Investment ratio: Hitachi Automotive Systems Co., Ltd. 51%
Honda Motor Company 49%

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