Honda, Hitachi sign MoU to build electric vehicle motors
With the continuous development of electric vehicles, Honda and Hitachi Automotive Systems have entered a joint venture. The two companies plan to establish a new firm which specializes in the development, manufacturing and sales of motors for electric vehicles. Most recently, Honda and Hitachi Automotive Systems have signed a Memorandum of Understanding.
At the time of writing, the two companies are now conducting formal discussions regarding the establishment of the new company. Towards the end March of 2017, the two companies plan to sign the definitive agreement for the establishment of the joint venture.
The still unnamed company is set to be established in July of 2017. Honda will hold 49% of shares while Hitachi Automotive Systems holds the rest of the 51%. Subsidiary operations are planned for the United States and China each with manufacturing and sales functions. With the establishment of these operations, the new company is set to expand the global supply of electric motors both to Honda and other automakers.
As the market for electric vehicles is expected to continually grow, the two companies say that their collaboration will strengthen their competitive advantage and allow further development of electric motors.