| 12:07 AM EST

Honda Sells Electronics Division

#asia #Yokohama #Honda


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Honda Motor Co. and Japan's Nidec Corp. will form a partnership to make computerized control safety equipment and other automobile components.

As part of the agreement, Honda will sell its automotive electronics parts subsidiary, Yokohama-based Honda Elesys Co., to Nidec for about 50 billion yen ($507 million). Elesys has plants in the China, Japan, Thailand and the U.S.

The deal will combine Nidec's electric motor expertise with Elesys' electronic control technology. Honda hopes to be able to purchase needed electronic vehicle components at a lower cost through Nidec than by owning the parts-making subsidiary.

Honda also announced plans this week to dissolve its Soltec Co. solar cell subsidiary by next March in the face of poor sales and tough price competition.