Hitachi, Ltd. and Honda to integrate four automotive parts manufacturers Oct. 30 20:58
Hitachi and Honda have agreed to integrate four automotive parts manufacturers. The company aims to expand its management base as it requires a large amount of investment in research and development of next-generation vehicles such as autonomous driving.
According to the announcement, Hitachi Automotive Systems, a subsidiary of Hitachi, Ltd., Honda affiliate parts manufacturers, Keihin and Showa, and Nissin Kogyo will be integrated.
Although the detailed schedule has not been decided, Honda will first make a tender offer to three affiliated companies to make it a wholly owned subsidiary, and then merge with Hitachi Automotive Systems.
The company name after the merger is Hitachi Automotive Systems, which means Hitachi will invest 66.6% and Honda 33.4%.
The total sales of the four companies last year totaled more than 1.7 trillion yen, and if integrated, one of the largest auto parts manufacturers in Japan would be born.
In the automobile industry, technological developments for next-generation vehicles such as automated driving and electric cars are becoming more intense, involving IT companies.
Hitachi and Honda aim to expand the management base of parts manufacturers and respond to research and development that requires large amounts of investment.
Hitachi Vice President “I want to establish competitive technology”
Vice President Keiji Kojima of Hitachi, Ltd. said at the press conference, “The automobile industry is facing an era of major change once every 100 years. We want to establish competitive technologies by combining each business. I would like to provide parts to customers all over the world. "
Honda Managing Director “I want to create new value”
Mr. Noriya Umihara, managing director of Honda, said at the press conference, "The situation surrounding the automobile industry has changed. I want to create value. "