Honda and Hitachi Partner to Produce EV Motors

Barely a week after announcing it would partner with General Motors to develop to develop hydrogen fuel cell technology, Honda Motor Company announced it has entered into a joint venture with Hitachi Automotive Systems, the auto parts subsidiary of Hitachi Ltd. This new agreement will see both companies partner to develop, create, and sell motors for electric vehicles so that both can better compete in the highly specialized, and increasingly competitive, "green" car segment.

 Automakers are beginning to pair up with parts suppliers more and more frequently as a means to expand their product lineups, while also containing the high costs of developing new EV technologies.

"Nobody knows exactly where the industry is going to go, so everybody has to have a variety of solutions. It's a way of preparing for the unknown," said Janet Lewis, managing director of equity research at Macquarie Capital Securities Japan.

Through this partnership, motors will be developed for a wide array of drivetrains, including gasoline hybrids, plug-in hybrids, and battery-electric cars. The deal will also have sales and manufacturing functions in the United States, China, and Japan. Hitachi Automotive already provides Honda with parts such as brakes.  

In addition to Honda, Hitachi Automotive Systems also has deals with Toyota, Ford, and Volkswagen. But they count their largest client as Nissan-Renault.

Honda stated during the North American International Auto Show last month in Detroit that they want two-thirds of their vehicle lineup to be comprised of new-energy cars by 2030. Such vehicles currently only make up about five percent of Honda's fleet. The automaker is planning to launch both a battery-powered and plug-in hybrid version of its Clarity fuel cell vehicle later this year.