Astemo to Invest $379 Million to Expand U.S. Motor Production Capacity

Japanese automotive parts supplier Astemo plans to invest a total of $379 million in two U.S. plants to expand its electric motor production capacity, with the additional output primarily dedicated to hybrid vehicles. Astemo intends to add approximately 300,000 square feet (about 27,900 square meters) of manufacturing space across two facilities in Berea, Kentucky, in the southern United States. The investment will be implemented in phases and is expected to ultimately create up to 282 jobs. The first phase, amounting to $112 million, will focus on enhancing electric motor production capacity. In May 2026, Honda Motor Co., Astemo’s primary customer, announced it would abandon its previous target of having battery electric vehicles (BEVs) and fuel cell vehicles (FCVs) account for 100% of its global sales by 2040. Honda subsequently unveiled a new strategy centered on hybrid models, aiming to launch 15 next-generation hybrid vehicles within three years starting in 2027. Astemo is a joint venture between Hitachi and Honda Motor, primarily engaged in developing and manufacturing various automotive systems, including hardware and software for chassis and powertrain systems, as well as autonomous driving and advanced driver-assistance systems (ADAS). Currently, Honda holds a 40% stake in Astemo, Hitachi also holds 40%, and JIC Capital owns the remaining 20%. Honda will acquire an additional 21% stake in Astemo from Hitachi, with the transaction expected to be completed by the end of 2026, giving Honda majority control. Upon completion, Honda’s ownership will increase from 40% to 61%, Hitachi’s stake will decrease to 19%, and JIC Capital will retain its 20% holding.