Honda and Hitachi to merge four car parts makers

Keiji Kojima, executive vice president of Hitachi Ltd., from left, Yasushi Kawaguchi, president of Nissin Kogyo Co., Brice Koch, president and chief executive officer of Hitachi Automotive Systems Ltd., Keiichi Aida, president and chief executive officer of Keihin Corp., Nobuyuki Sugiyama, president of Showa Corp. and Noriya Kaihara, managing officer of Honda Motor Co., pose for a photograph during a news conference in Tokyo, Japan, on Wednesday, Oct. 30, 2019. Honda and Hitachi agreed to merge four of their car parts businesses to create a components supplier with almost $17 billion in sales, joining a wave of partnerships sweeping the global auto industry.

TOKYO: Honda Motor Co and Hitachi Ltd agreed to merge four of their car parts businesses to create a components supplier with almost US$17bil in sales, joining a wave of partnerships sweeping the global auto industry.

Honda, Japan’s second-biggest carmaker, and Hitachi, one of the country’s biggest industrial conglomerates, said yesterday they will combine Hitachi Automotive Systems and Honda affiliates Keihin Corp, Showa Corp and Nissin Kogyo Co. Following a tender offer and an interim consolidation, Hitachi will own two-thirds of the new entity, with Honda owning the rest, the companies said. Shares of the parts makers soared.