Tokyo, Japanese automaker Honda Motor Co. and Hitachi, a Japanese conglomerate, announced today their plans to create a joint venture to manufacture motors electric cars.
The new joint venture will be headquartered in Tokyo. It will be capitalized at $45 million, with 51% owned by Hitachi and the rest is owned by Honda. The manufacturing and sales are likely to be focused in the US, Japan and China. The joint venture might not even need to build new plants, relying on Hitachi's ones available in those countries. The details of the agreement will be finalized next month, Japanese news agency Kyodo reported today. The newly produced motors will not be specifically for Honda, but can be sold to other companies.
The move comes amidst a trend in the US and in Europe that saw increasing demand for electric cars. Regulations in both regions have also increased heavily in recent years regarding Carbon-emitting cars, which is Honda's full portfolio. Rivals of Honda such as Nissan and General Motors have already made their push for producing electric cars. In addition to Tesla, which is considered the leader of the industry. The cooperation with Hitachi will also help Honda reduce the costs of producing electric vehicles, which are so far much more expensive to produce compared to the traditional cars.
Last month, Honda announced that it cooperated with General Motors to produce systems for the fuel-cells cars.
Source: Qatar News Agency