Hitachi and Honda have signed of a Memorandum of Understanding (MoU) aiming to establish a joint venture company for development, manufacture and sales of motors for electric vehicles.
The two companies will now conduct talks regarding the establishment of the new company.
In a statement they said the two companies signed the MoU with the aim of using the collaboration between a vehicle manufacturer and supplier to generate technological synergy and economies of scale that will strengthen their competitive advantage and business foundation for the motors at the core of an electric vehicle system.
Subsidiary operations of the new Japan-based joint venture are planned for the United States and People’s Republic of China, each with manufacturing and sales functions.
The two signatories said the new company will expand the global supply of motors by creating a robust response to demand from Honda and other vehicle manufacturers.