Honda and Hitachi Automotive Systems have signed a Memorandum of Understanding (MoU), aiming to establish a joint venture company for the development, manufacture and sales of motors for electric vehicles (EV). The two Japanese companies will sign the MoU at the end of March this year with the new company being established in July.
Hitachi Automotive Systems will own 51% of the company while 49% of the company will be owned by Honda. The partners are investing 5 billion in this new project and will be headquartered in Japan.
Besides Japan, subsidiary operations of the new joint venture are planned for the United States and in China, each with manufacturing and sales functions. Together with the establishment of these operations, the new company will expand the global supply of motors to be used in petrol hybrids, plug-in hybrids and battery-electric cars, by creating a robust response to demand from Honda and other vehicle manufacturers.
This collaboration is the latest move that shows Honda is getting serious about electrification. In addition to this latest partnership for developing electric car motors, last year, the company aims to make electrified vehicles account for two-thirds of its global sales by 2030, from around 5% now.
Honda is planning to launch battery-powered and plug-in petrol hybrid versions of its Clarity fuel-cell vehicle later this year, and a new dedicated hybrid for next year.
