TOKYO -- Honda Motor and Hitachi Automotive Systems are joining hands to establish a company to develop and produce motors for electric cars.
Motors and cells are key components in an electric vehicle in regard to performance and attractiveness. For Honda, the partnership helps its efforts to catch up with its rivals in electric vehicles.
Honda plans to release electric sedans in the U.S. by the end of the year. The partnership aims to achieve an economy of scale by selling motors to other automakers as well.
In 2013, Honda partnered with General Motors of the U.S. to jointly develop core systems for fuel-cell-powered electric vehicles. The two carmakers have also agreed to start a joint venture that would take care of production.