Honda, Hitachi eye new venture

Honda Motor Co said on Tuesday it plans to set up a joint venture with Hitachi Automotive Systems Ltd to develop, produce and sell engines for electric vehicles.

The joint venture has plans to manufacture in Japan, the United States and China and will consider using Hitachi's existing plants in those countries, Hitachi Automotive Chief Executive Officer Hideaki Seki said in Tokyo on Tuesday.

The new company will also sell to automakers other than Honda if there's demand, he said.