Report – Honda selling its electronic parts unit to Nidec image

The Japanese Nikkei business daily has just reported that Honda Motor Co has decided to sell its electronic parts subsidiary to Japan’s Nidec Corp.

The Nidec Corporation, a producer of precision motors, has reportedly agreed to purchase the unit and close the deal for a lump sum of around 50 billion yen ($500 million), according to the newspaper. Products of the company can be found in many places, such as hard-disk drives, household electric appliances, commercial and manufacturing equipment. The two product groups with the largest sales are the hard-disk drive motors (30% of sales) and electrical and optical components (21.5%).

The agreement would be part of a move for Honda and Nidec to spearhead their cooperation in the growing field of electronic controls for cars, the Nikkei said.The Nidec has its headquarters in Minami-ku, Kyoto, and factories in Nagaokakyō, Thailand, the People’s Republic of China, Singapore, Indonesia, the Philippines, and Vietnam.

The majority of the stake in the unit, Honda Elesys Co, is today owned by Honda, the third largest Japanese automaker and NEC Corp, both agreeing to sell the stake to Nidec as early as the start of next year, the paper said.

Via Reuters