With more and more car manufacturers joining the arms race of building sustainable, affordable electric vehicles (EV), Honda and Hitachi announced plans of establishing a joint EV company. The new unnamed brand aims to mass produce EV motors and parts, as well as to manage high production costs.
The 5-billion Japanese Yen (around P2.2 billion) venture will be established on July 2017. According to a press release, Honda will own 49% of the upcoming Japan-based company while Hitachi Automotive Systems, Ltd. gets the “majority” with a 51% share.
Furthermore, the joint venture will have subsidiary operations planned for the United States and China, creating a global supply of motors for Honda and other automotive manufacturers.
Meanwhile, Honda plans to continue promoting EVs globally with the use of motors from the joint venture company. As for Hitachi, the brand says that it will keep its current relations with other car brands by supplying motors for each.