TOKYO – Japanese supplier Hitachi Automotive Systems and Honda Motor Co., Ltd. have signed a Memorandum of Understanding (MOU) to establish an electric vehicle motor joint venture that will have operations in China and the U.S., according to a joint announcement from the two companies on February 7.
The MOU was signed on February 3 and the two companies will conduct formal discussions regarding the establishment of the JV.
Each of the subsidiary operations in China and the U.S. will have manufacturing and sales functions. Together with the establishment of these operations, the new JV will expand the global supply of motors by creating a robust response to demand from Honda and other vehicle manufacturers.
Hitachi and Honda aim to use the collaboration between an OEM 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.
The 51:49 JV between Hitachi and Honda will be named at a later date and will have a registered capital of 5 billion yen and is expected to be formally established in July 2017.
The signing of the definitive agreement for the establishment of the JV is planned for the end of March 2017.
Hitachi started selling EV motors in 1999 and has delivered a high volume of these motors to vehicle manufacturers in Japan and throughout the world.