Honda and Hitachi Team Up For Electric Vehicles
Rennie Scaysbrook | February 9, 2017
The Honda Motor Company and electrical goods manufacturer Hitachi’s auto parts subsidiary plan to form a joint venture that will see the two Japanese giants develop and sell electric vehicle powerplants for both two and four wheeled vehicles.
“Producing motors is capital intensive, so rather than just manufacturing them for our own purposes, we would like to produce in large volumes with the possibility of supplying a variety of customers,” said Honda Chief Executive Officer Takahiro Hachigo. The move will likely see a ramping up of development for the motorcycle section of the Honda Motor Company as it pushes further into the Class 1 category of vehicles that include 50cc and electric scooters, with more finances and resources being directed toward large electric motorcyles.
The announced deal will be established in July and has been kickstarted with an investment of 5 Billion Yen ($44.69 million), with sales and manufacturing operations in the USA and China. Hitachi will own 51 percent of the company, with 49 percent going to Honda.
Hitachi and Honda already have a long standing relationship, with the former supplying Honda with engine and brake components for many years.
