Hitachi and Honda Sign an MoU for Future Electric Vehicle Motor Joint Venture Company

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Hitachi and Honda Sign an MoU for Future Electric Vehicle Motor Joint Venture Company

Looking towards the future, Honda has signed a Memorandum of Understanding (MoU) with Hitachi in order to establish a joint venture in the future that will be developing, manufacturing, and selling motors for future electric vehicles. As the world progresses towards hybrids, fuel cell vehicles, and pure electric vehicles, the demand for electric motors will continue to rise. In the case of Honda, they don't have much expertise when it comes to building full electric cars- but when you don't have a finished product to sell, the next best thing to do is become a critical component supplier.

Hitachi Automotive Systems has been in the vehicle electric motor game since 1999, and their designs since then have improved in terms of efficienc, output, and weight. Honda has also been in the business of hybrid vehicles since 1999 with the Insight, which has seen a certain degree of success. In a nutshell, Hitachi understands how best to make these motors, and Honda understands how to apply them in practice. 

There are also expected to be subsidiary operations in the U.S. and China, both in terms of manufacturing and sales. Both markets will have a very high demand for electric motors given the way the industry is headed, so it makes sense to localize production. Hitachi Automotive will continue to provide motors to the companies that it currently supplies to, while Honda will also continue to promote electric and hybrid vehicles in order to help the market along. 

1. Overview of the Joint Venture Company (planned)

Name of company:To be determined 
Location:2520 Takaba, Hitachinaka City, Ibaraki Prefecture.
Representative:To be determined 
Business:Development, manufacture and sales of motors for electric vehicles
Capital:5 billion yen 
Planned date of establishment:July 2017 
Investment ratio:Hitachi Automotive Systems, Ltd.
Honda Motor Co., Ltd.

2. Future schedule

The signing of the definitive agreement for the establishment of the joint venture company is planned for the end of March 2017.

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