Honda and Hitachi Automotive signed a MoU establishing a company for electric vehicle motors. Wayne Gerdes – CleanMPG – Feb. 7, 2016 Honda and Hitachi announced the signing of a Memorandum of Understanding ("MoU") aiming to establish a joint venture company for the development, manufacture and sales of motors for electric vehicles. The two companies now will conduct formal discussions regarding the establishment of the new company. Hitachi Automotive Systems started selling motors for electric vehicles in 1999 and has been refining the technological and product capabilities ever since. The company has earned accolades across the industry for the performance of their technology. Environmental conservation measures and regulations are increasing across the globe nudging the market for electric vehicles towards expansion. The two companies signed the MoU with the aim of using the collaboration between a vehicle manufacturer and supplier to generate technological synergy and economies of scale that will strengthen their businesses for the motors at the core of an electric vehicle system. Subsidiary operations of the new Japan-based joint venture are planned for the U.S. and China, each with manufacturing and sales functions. The new company will expand the global supply of motors for Honda and other vehicle manufacturers. In parallel to the efforts of the new company, Hitachi Automotive Systems will continue to promote its business operations by maintaining the business relationships it has with vehicle manufacturers that receive their supply of motors from the company. Honda will continue to focus on the global promotion of electric vehicles by using motors from the new company as well as the motors it currently manufactures itself in Japan.