Honda Motor Co. the Japanese Automaker has now joined hands with Hitachi Automotive Systems for making, developing as well as selling motors for EV i.e. Electric vehicles. Yes, the companies are of the opinion that since global warming is on a rise, this move will surely help in curbing it; as a result of it, Hitachi and Honda have signed a deal and wish to curb the concerns. The agreement was announced today and this is great news for the industry.
Honda as we all know is into making of electronic motors and has some fuel-cell vehicles in the pipeline; some hybrids too are on its way. Now, there are plans of an EV sale this year and it would be hosted mainly abroad. Hitachi on the other hand, is Tokyo Based and in the past too, it has supplied several electric motors to other biggies including Nissan Motor Co., the maker of Leaf electric car and the U.S based General Motors Co.
This deal is indeed a great opportunity for Honda to take part in electric cars. As of now, the joint venture has not been named; according to the deal, Hitachi will own 51 percent of it in the sales and manufacturing options in the China and US, said the companies.
Since the regulations of Global environment are going to be tightened, the demand for Electric vehicles is going to be pushed up. The capital invested in this joint venture is 5 billion yen and is based in the city “Hitachinaka”, the one based in North of Tokyo.
The establishment of this venture would happen in the month of July; as we said before, 49 percent will be held by Honda. The main concentration would be motors that will be used in battery electric cars, plug in hybrids, petrol hybrids etc. Hitachi LTD owns Hitachi Automotive Systems and since long, it has been supplying various brake parts and engines.
With this tie-up, the willingness of Honda to cooperate with another industry player is highlighted; these low-emission cars are going to be great for the environment. Last week too Honda had announced that it would team up with GM for producing power systems that run on hydrogen fuel.