Honda Motor has boosted its stake in vehicle body frame component maker Kikuchi Co. to 20.7% from 8.3% to enhance their business relationship, Kyodo News reported.
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A Honda spokesman told the news agency the company’s ties with Kikuchi stretch back to 1964.
With the share acquisition, Honda has become Kikuchi’s top shareholder, eclipsing the 16.8% stake held by investment fund K.P. Co., the report said.
With future market growth expected in China and other Asian markets, strengthening the companies’ ties will be pursued when Honda expands its overseas operations so overseas production of Kikuchi’s parts can accompany the car maker’s own expansion, Kyodo News added.
