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Honda and Hitachi Establish Largest Motorcycle Component Supplier

Goodbye Showa, Nissin and Keihin!

Honda and Hitachi announced the upcoming consolidation and integration of three well-known OEMs, including Hitachi, into one major brand called Hitachi Automotive Systems. The news says it will “A takeover linking where the Hitachi Automotive Systems brand will appear and the Keihin, Showa and Nissin brands will disappear.”

The largest supplier of motorcycle components

The timing of the abolition of the three brands and their transition to Hitachi Automotive Systems has not yet been announced. Showa’s customers include Harley Davidson, Kawasaki and Suzuki, while Nissin supplies components to the same brands, plus Yamaha. It is not yet clear how the merger will affect the established business ties.

The merger will combine advanced Keihin technologies in powertrain design, Showa in suspension and steering and Nissin in braking systems with Hitachi Automotive Systems’ advanced engine, chassis and safety capabilities, Honda said in a press release.

Indeed, with the development of control systems and components of modern motorcycles, their nodes are increasingly connected by a single electronic network, and the separate implementation of brake, suspension and engine control systems makes less sense. By bringing together key brands in their industries under the wing of Hitachi Automotive Systems, a common science and technology base will be able to better integrate existing developments and the potential of the design bureaus of the merger participants. Also, the new leadership will be able to coordinate a single direction of research and development of the alliance.

Hitachi Automotive Systems

Honda and Hitachi also anticipate the coming revolution in the electric vehicle industry and an increase in the number and functionality of electronic assistants, all the way to complete vehicle autonomy. The companies participating in the merger report that the merger will help them respond to market demands more quickly and efficiently.

According to the preliminary review of the deal, Honda will receive the remaining 66.5 percent of Showa (it currently owns 33.5 percent), 63.14 percent of Nissin and 58.65 Keihin, buying them from the general shareholders. After the full package of assets is consolidated in the hands of Honda, they will be taken over by Hitachi Automotive Systems, a subsidiary of Hitachi. Upon completion of the merger, Honda will own a third of Hitachi Automotive Systems, while Hitachi will retain control of the remaining two-thirds. Showa, Nissin and Keihin will disappear as separate companies.

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