June 18, 2024

Mitsubishi Electric Corporation, Mitsubishi Electric Mobility Corporation (Mitsubishi Electric and Mitsubishi Electric Mobility are collectively referred to as “Mitsubishi Electric Group.”) and AISIN CORPORATION announced today the three companies have reached a basic agreement to establish a joint venture (the “JV”) company to handle products for next-generation electric vehicles (EVs) (the “Transaction”).

The JV will succeed to part of Mitsubishi Electric Mobility’s business, and will develop, produce and sell traction motors, power converters (inverters, etc.) and their control software, which will be optimized for vehicles and relevant systems and used in next-generation EVs, including battery EVs (BEVs) and plug-in hybrid vehicles (PHEVs). The relevant parties will leverage its respective strengths and respond to the diversifying needs for vehicle electrification, ultimately to contribute to global carbon neutrality.

The Mitsubishi Electric Group has strengths in power electronics technologies such as power devices and inverters, motor technologies and control optimization technologies. Mitsubishi Electric Mobility, which is engaged in the automotive equipment business, possesses expertise in vehicle electrification for hybrid vehicles (PHEVs, HEVs) and is addressing needs in the vehicle electrification market growing rapidly due to acceleration of carbon neutrality initiatives, creating synergies with new partners and expanding its product lineup for diversifying EV systems.

AISIN offers a full lineup of electric units that drive all types of EVs, including BEVs, PHEVs, and HEVs, and provides them to customers around the world through BluE Nexus*, thereby contributing to improved power consumption and driving performance of the entire vehicle. As vehicle electrification continues to accelerate in the context of regional energy situation and policies, there is an increasing diversity of needs for products and technologies, including systems, performance and cost. AISIN will carefully respond to diversifying needs and expand the variety and quantity of electric units through BluE Nexus, utilizing the development capability of the JV based on the full line-up of technology development concepts AISIN has promoted.

The JV will offer new and attractive products to a wide range of customers, maximizing the synergy of Mitsubishi Electric Mobility’s traction motors, power converters and control optimization technologies, and AISIN’s integration technology (vehicle adaptation technology and system integration technology).

The JV will initially be spun off from Mitsubishi Electric Mobility as a new company responsible for its electrification business by way of a company split, and eventually have the Mitsubishi Electric Group as the majority shareholder (66%) and AISIN as the minority shareholder (34%). The completion of the Transaction will be subject to regulatory clearances and consents of competition and other relevant authorities.

An overview of the new JV is in the Appendix. Further details will be announced as they become available.

*BluE Nexus is a joint venture established between AISIN and DENSO in 2019. It specializes in the development, adaptation, and sales of electrification systems and electric drive modules.