Hitachi Automotive Systems, Ltd. and Honda Motor Co., Ltd. announced the establishment of a joint venture company for the development, manufacture and sales of motors for electric vehicles on the premises of Hitachi Automotive Systems in Hitachinaka-shi, Ibaraki Prefecture.
As announced on February 7, 2017, the two companies have conducted discussions based on a Memorandum of Understanding signed on February 3, and entered into a joint venture agreement on March 24 to make more tangible preparations to establish the new company. The newly established company will receive a financial grant from Ibaraki Prefecture as it has been recognized as a relevant project that "promotes the establishment of corporate head office functions" within the prefecture.
The JV will be called Hitachi Automotive Electric Motor Systems, Ltd. It was formally established on July 3, 2017. As indicated in the earlier announcement, the new company has been funded with 5 billion yen with Hitachi holding a 51% interest and Honda holding 49%. The new company will respond to the growing global demand from automakers for electric vehicle motors by developing competitive motors that combine the expertise of the two companies.