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TOKYO — Hitachi Automotive Systems, Ltd. and Honda Motor Co., Ltd. today announced the establishment of a joint venture company for the development, manufacture and sales of motors for electric vehicles on the premises of Hitachi Automotive Systems in Hitachinaka-shi, Ibaraki Prefecture.
As announced on Feb. 7, the two companies have conducted discussions based on a Memorandum of Understanding signed on Feb. 3, and entered into a joint venture agreement on March 24 to make more tangible preparations to establish the new company.
The newly established company will receive a financial grant from Ibaraki Prefecture as it has been recognized as a relevant project that “promotes the establishment of corporate head office functions” within the prefecture.
The new company, Hitachi Automotive Electric Motor Systems Ltd., will respond to the growing global demand from automakers for electric vehicle motors by developing competitive motors that combine the expertise of the two companies.
The venture represents a $44 million investment for the parent companies.