Photo: Honda
Like Honda, Hitachi is a mammoth of a company. The Japanese conglomerate was founded in 1910 and, for quite a while now, it is a constituent of the Tokyo Stock Exchange’s Nikkei 225 index.
The Automotive Systems division of Hitachi Ltd. sold its first self-developed electric motor in 1999. Since then, the company has been refining the technological and product capabilities. But now that electric vehicles are getting increasingly popular, Hitachi took note of the writing on the wall. And so it joined hands with Honda.
During a conference held in Tokyo today, Honda and Hitachi told that they’re forming a joint venture to develop, produced, and sell electric motors. Honda believes that EVs will account for 2/3 of its global sales by 2030. In simpler terms, this is a win-win situation.
Full details of the joint venture will be revealed in March, when both parties are scheduled to sign the definitive agreement for the establishment of the company. With a capital of 5 billion yen and an investment ratio of 51 percent for Hitachi and 49 percent for Honda, the JV is slated to go online by the end of July 2017.
Bearing in mind Honda is the only Japanese automaker without a strategic partnership in regard to electrification, Hitachi’s help is a helping hand Honda couldn’t do without in the long run. However, Honda will retain a part of its electric motor production in the near future, especially now that the brand is getting serious about fuel cell vehicles. According to Honda chief executive officer Takahiro Hachigo, the joint venture’s electric motors would find their way into regular hybrids, plug-in hybrids, and battery-powered EVs.
The bottom line is, spreading investment costs is the key detail to Honda’s tie-up with Hitachi. Part of the electric motors production will be handled by Hitachi in China and in Kentucky, USA. On an ending note, the JV doesn’t have a name yet.
During a conference held in Tokyo today, Honda and Hitachi told that they’re forming a joint venture to develop, produced, and sell electric motors. Honda believes that EVs will account for 2/3 of its global sales by 2030. In simpler terms, this is a win-win situation.
Full details of the joint venture will be revealed in March, when both parties are scheduled to sign the definitive agreement for the establishment of the company. With a capital of 5 billion yen and an investment ratio of 51 percent for Hitachi and 49 percent for Honda, the JV is slated to go online by the end of July 2017.
Bearing in mind Honda is the only Japanese automaker without a strategic partnership in regard to electrification, Hitachi’s help is a helping hand Honda couldn’t do without in the long run. However, Honda will retain a part of its electric motor production in the near future, especially now that the brand is getting serious about fuel cell vehicles. According to Honda chief executive officer Takahiro Hachigo, the joint venture’s electric motors would find their way into regular hybrids, plug-in hybrids, and battery-powered EVs.
The bottom line is, spreading investment costs is the key detail to Honda’s tie-up with Hitachi. Part of the electric motors production will be handled by Hitachi in China and in Kentucky, USA. On an ending note, the JV doesn’t have a name yet.
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