Hitachi and Honda plan to merge four auto parts makers

Hitachi Ltd. and Honda Motor Co. plan to merge four auto parts makers to boost their competitiveness, industry sources said Wednesday. The plan is a response to increasing competition in the development of next-generation technologies such as electric and self-driving vehicles, the sources said. The two companies were expected to announce the plan later in the day. Hitachi would hold a majority stake in the merged company, according to the sources. The combined sales of the four firms would be around ¥1.8 trillion ($165 billion), making the merged company one of the leading auto parts manufacturers in Japan.