Nidec Corporation has agreed to start discussions on establishing a joint venture with Hon Hai Technology Group and Foxtron Vehicle Technologies of Hon Hai Technology Group in Taiwan.
Back in March earlier this year Nidec signed a memorandum of understanding with Foxtron regarding its strategic alliance in the development of electric vehicle (EV) drive systems.
Foxtron and Nidec have continued joint development to supply products equipped with Nidec’s traction motor system E-Axle for customers. Moving forward to prepare the productions further, Hon Hai/Foxtron and Nidec have come to consider establishing a joint venture.
The JV aims to ensure a stable supply of traction motors and other automobile motors for Hon Hai/Foxtron, and to expand sales opportunity of new markets and customers for Nidec, a press release reads.
Hon Hai/Foxtron and Nidec will now conduct feasibility studies and contract negotiations with the aim of concluding a joint venture establishment agreement by the end of December 2021.
The JV will be headquartered in Taiwan and will be established within 2022. In addition, the main business of the JV will be the development, production and sales of traction motor systems and various motor-related products for automobiles.