Hitachi, Honda suppliers to merge parts biz to cut EV, self-driving costs

Topics Hitachi | Honda

Hitachi Ltd <6501.T> will merge its vehicle components unit with Honda's <7267.T> three suppliers in a bid to cut development costs and better respond to a rapid industry shift to electric vehicles (EV) and self-driving.

The deal to create Japan's third-biggest auto-parts supplier by sales also marks intensifying consolidation in the country's auto industry, as it struggles to adapt to technological change. Honda's bigger rival Toyota Motor Corp <7203.T> announced last month it would raise its stake.

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