Hitachi Automotive Systems and Honda Motor Company have signed a Memorandum of Understanding that will see the two companies create a new joint venture focused on the development, manufacture, and sale of motors for electric vehicles, according to a new press release.
Formal discussions between the two companies concerning the specifics of the planned new company are reportedly now underway.
The press release states, though, that:
- The establishment of the new joint venture is now planned for July 2017
- Initial capital will total 5 billion yen
- The investment ratio between the two firms will be near equal (Honda with a 51% stake, and Hitachi Automotive Systems with a 49% stake)
- The signing of the definitive agreement for the establishment of the joint venture is slated for the end of March
So, we do seem to know quite a lot, despite the ongoing negotiations.
The press release provides more:
“Going forward, with environmental conservation measures and regulations increasing on a global scale, the market for electric vehicles is expected to continue to grow. Based on this direction, 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 electric vehicle system.
“Subsidiary operations of the new Japan-based joint venture are planned for the United States 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… Moreover, Honda will continue to focus on the global promotion of electric vehicles by using motors from the new company as well as the motors it currently manufactures itself in Japan.”
As some background here, Hitachi Automotive Systems has been selling electric vehicle motors since 1999 and has manufactured a high volume of motors that have been delivered to local Japanese manufacturers to date.