The two companies will invest a total of £36m in the Japan-based venture which is set to be established in July this year
Doug Revolta Autocar
7 February 2017

Honda and Hitachi have agreed a deal in principal to develop, manufacture and sell electric car motors.

The companies signed a Memorandum of Understanding (MoU) for the Japan-based venture and are set to finalise a definitive deal next month pledging to invest a combined total of £36m.

Honda will continue to use its own motors, which it currently manufactures in Japan, as well as motors from this new venture. Hitachi already provides parts for Honda, and also counts Renault, Nissan, Toyota, VW and Ford among its clients. Once the deal is formally agreed, the companies will set up manufacturing and sales functions in the United States and China.

A name is still to be decided for this new company but a planned date of establishment has been slated for July 2017. Five billion Yen (around £36m) is being invested in the venture and the investment split is 51% for Hitachi Automotive Systems, and 49% for Honda.

Honda currently does not have a fully electric car in its lineup, but the hydrogen-powered FCV Clarity could still reach the UK. It has also pledged to release a hybrid model in 2018 along with more plug-in hybrid and electric vehicles by 2020.

The news follows an announcement last week that Honda will partner with General Motors to produce hydrogen fuel cell power systems.

A definitive agreement of this electric motor company deal is due to be signed at the end of March.

Our Verdict

Honda Clarity FCV

Honda’s fuel cell flagship reaches its second generation, but is the world ready?

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Volkswagen Golf MHEV
    First Drive
    23 November 2017
    VW's 48V mild hybrid technology is still a few years away from production, but we’ve sampled a prototype Golf fitted with it and are suitably impressed
  • Jeep Compass
    First Drive
    23 November 2017
    Jeep enters the competitive compact SUV market with its new Compass, blending ruggedness with contemporary styling and tech
  • BMW 1 Series Saloon
    We had a short drive in a China-only front-wheel-drive BMW 1 Series
    First Drive
    23 November 2017
    A brief drive in a China-only front-wheel-drive model shows the future is bright for the 1 Series when it makes the switch from RWD next year
  • BMW 5 Series
    First Drive
    23 November 2017
    The BMW 5 Series is top of the mid-exec pack, but is there still room for a diesel saloon in everyday family life?
  • Toyota Prius PHEV
    First Drive
    23 November 2017
    Does running a plug-in hybrid really make sense as a 500-mile-a-week driver? Six months with a Toyota Prius Plug-in should give a conclusive answer