On Tuesday Honda Motor and Hitachi Automotive dealing with parts supply announced to conduct a news conference later in the day. The conference was regarding the operational partnership between the two companies for the future. Automakers are teaming with parts suppliers to expand their business and maintain the costs of development.
According to the sources from Honda Motor Co Ltd the conference was going to be held amid the chief Executive Officer Takahiro Hachigo of the automobile company and his counterpart at Hitachi Automotive. The partnership would help the automakers to serve a larger number of customers.
Both companies have decided to form a joint venture to develop and sell electric vehicles.
The meeting was held at Tokyo the capital city of Japan at GMT 0630. Hitachi Automotive has been supplying spare parts to Honda Motor since several years. The products they manufacture include engine control units and electric powertrain systems. The company has also developed autonomous driving systems. The vehicles built using the technology can be operated without using human input. They sense the surrounding and navigate accordingly. In partnering with the spare supplier company Honda expects to develop new technologies with lesser burden on their finances.
The automotive systems supplier would extend their full support to the auto manufacturer in developing new ventures. The competition in the automobile sector has been increasing in the past few years with several new players in the market. Teaming up with other related automobile company would help Honda Motor Co Ltd to compete and stay ahead in the competition.
Both companies stated that the venture is going to be established in July with an investment of 5 billion yen ($44.69 million) Hitachi Automotive Systems will own 51% and 49% held by Honda (HMC).
