Hitachi Astemo Ltd., a joint venture between Hitachi Ltd. and Honda Motor Co. formed in early 2021, aims to expand its capabilities in sustainable products, company executives said at a media presentation in Farmington Hills, Mich. Astemo is short for advanced sustainable technologies for mobility.
The focus will be on electric vehicle systems and advanced driver assist systems (ADAS) while maintaining product lines for traditional chassis and internal combustion engine components. Powertrain (electrified and ICE systems) and chassis systems currently each account for 40% of Hitachi Astemo’s business, while the remaining 20% comes from motorcycle components. The overall business contributed 17% of Hitachi’s $80.1 billion revenue in fiscal 2022.
Moving forward, the Hitachi Astemo expects electrification (motors, inverters and battery control units) to be the fastest growing part of its business. This includes modular e-Axle systems and an integrated electrical/electronic platform by 2025, when the company expects to derive more than $3 billion from its electrification business.
“We were one of the early adopters of electrified systems, and we expect to continue this leadership in the future,” Tim Clark, president and CEO of Hitachi Astemo Americas, said at the press event. But while most of the company’s research and development efforts for powertrain-related products will be go toward electrified systems, Clark said ICE systems will continue to be a “significant part” of the Hitachi Astemo’s business for the foreseeable future. Meeting more stringent global emissions standards will require a mix of pure electric, hybrid and advanced ICE powertrains, he added.
Hitachi Astemo also forecasts growth throughout its ADAS lineup, which includes stereo cameras, millimeter-wave radar, control units, central gateway and map positioning units. In addition to new business, enhancements to existing control software will be offered as over-the-air (OTA) software updates to vehicles. By 2030, the company envisions services such as truck platooning, autonomous EV shuttles, high-definition mapping, mobility management and secured OTA platform.
To help meet increasing demand for EVs in North America, Hitachi Astemo recently announced a more than $100-million expansion of its Berea, Ky., manufacturing facility. The 752,000-sq-ft expansion is expected to add 167 new jobs, bringing the company’s total Kentucky employment to more than 2,100.
Tokyo-based Hitachi Astemo teams Hitachi’s former Automotive Systems unit with three former Honda affiliates: Nissin Kogyo, Keihin and Showa. Honda plans to increase its stake in the joint venture from 33.4% to 40% in September, with Hitachi retaining 40% (down from 66.6%) and JIC Capital holding the remaining 20%.
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