Honda R&D, the automaker's subsidiary, has acquired California-based Drivemode "to further strengthen Honda's new value creation in the areas of digital and connected mobility products".

Following the acquisition, Drivemode became a wholly-owned subsidiary of Honda R&D.

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Drivemode is a startup that develops and operates smartphone based connected services, working in multiple areas such as the development of the user interface and application as well as cloud-based technology.

Honda R&D and Drivemode have been collaborating and conducting joint development activities since 2015 through the Honda Xcelerator programme, an open innovation project operating worldwide.

In April 2019, Honda established its Digital Solution Centre within Honda R&D which will focus on creating new value through use of digital technology.

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With this acquisition, the centre and Drivemode will work together to accelerate new value creation in the area of connected mobility services.

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"As a step toward the realisation of value creation for mobility and enhancing people's daily lives, which is an integral part of Honda's 2030 Vision, we decided to further enhance our collaborative relationship with Drivemode," said Toshihiro Mibe, president and representative director of Honda R&D.

"We are confident that new value creation will become possible when Drivemode's outstanding human resources, innovative software technologies and extensive experience as a venture company are combined with Honda's product development technology and capability."

"Since Drivemode began working with Honda in 2015, our entire company has been inspired and impressed by the entrepreneurial spirit driving its engineering and product development. Guided by our shared culture of innovation and transformation, we are proud to join Honda as their first startup acquisition," said Yo Koga, CEO of Drivemode.