Key facts
- Astemo will invest $379 million in two U.S. plants to increase electric motor production.
- The investment is driven by rising demand for hybrid vehicles in North America.
- Honda, Astemo's primary customer, is shifting focus to hybrids over electric and fuel cell vehicles.
- Honda will become Astemo's consolidated subsidiary after acquiring an additional 21% of shares from Hitachi.
- The new shareholding structure will be 61% Honda, 19% Hitachi, and 20% JICC.
Japanese automotive parts supplier Astemo plans to invest a total of $379 million in two U.S. plants to boost production capacity for electric motors, primarily for hybrid vehicles as North American demand rises. This strategic move aligns with its main client, Honda Motor Co., Ltd., which is prioritizing hybrid technology over fully electric and fuel cell vehicles.
In a related development, Honda will become Astemo's consolidated subsidiary by acquiring an additional 21% of Astemo shares from Hitachi, Ltd. This transaction, expected to be completed in the first quarter of the fiscal year beginning April 1, 2026, will change Astemo's ownership structure to 61% for Honda, 19% for Hitachi, and 20% for JICC Capital, Ltd. Astemo was originally formed in January 2021 through the integration of Hitachi Automotive Systems and three Honda subsidiaries. The company aims to accelerate its efforts in electrification and AI-driven intelligence for software-defined vehicles (SDVs) and is considering an initial public offering (IPO).