Hitachi, Honda to Merge Automotive Suppliers
Tokyo, Oct. 30 (Jiji Press)--Hitachi Ltd. <6501> and Honda Motor Co. <7267> said Wednesday that they will merge a total of four automotive parts suppliers in their respective groups.
The move is expected to create the third largest auto parts supplier in Japan in terms of sales following Denso Corp. <6902> and Aisin Seiki Co. <7259>, both affiliated with Toyota Motor Corp. <7203>.
The merger is designed to achieve economy of scale and boost competitiveness at a time when companies are racing to develop core parts for electric vehicles, autonomous driving systems and other new automotive technologies.
Under the plan, Hitachi Automotive Systems Ltd. will absorb three Honda affiliates--Keihin Corp. <7251>, Showa Corp. <7274> and Nissin Kogyo Co. <7230>.
Hitachi will have a 66.6 pct stake in the merged company while Honda will own the remaining 33.4 pct.
[Copyright The Jiji Press, Ltd.]