Honda has joined hands with Hitachi in order to form a joint venture that will specialize in the development and manufacture of electric motors for future vehicles. These engines will be used for both Honda models as well as other automotive OEs.
The joint venture company will be called Hitachi Automotive Electric Motor Systems, with Hitachi having a majority stake of 51 percent, while Honda will have a 49 percent share in the company. The new company has already become operational from Hitachi Automotive Systems current factory in Hitachinaka-shi, Ibaraki Prefecture, Japan.
Together, both companies have invested a total amount of $ 44 million in the new company, which will be engaged in the production of high-spec electric motors. In a bid to control development costs, Many automotive manufacturers are teaming up with component manufacturers to build parts for the EV segment. This demand for EVs is growing at a very fast pace in view of the growing global concern about the impact of automobiles on the environment.
Honda Chief Executive Officer Takahiro Hachigo said that as making motors is capital intensive, instead of manufacturing motors just for Honda, it would be better to make motors in larger volumes for supplying them to a variety of customers. The auto manufacturer is planning to leverage Hitachi’s expertise in volume production.
Emission norms across the world have become more stringent and all automotive manufacturers are currently engaged in the development of alternative powertrains so that vehicles could reduce their use of fossil fuels.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She has expertise in writing copy both from the agency and corporate perspectives and has worked on press releases, website content, all kinds of marketing collateral and management of social media channels like facebook and Twitter. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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