Honda Took Pride in Doing Everything Itself. The Cost of Technology Made That Impossible.

The car maker outsources key tech for electric vehicles and autonomous driving to fight high R&D costs

Honda once used staff technicians to design new technologies ranging from engines to the shape of the suspension arms. Today, Honda believes rapid shifts in technology mean it can no longer afford to keep pace working solely on its own.

That is raising hackles among some within the company who complain about “PowerPoint engineering”—where engineers assemble slides showing how they will patch together others’ technology rather than build it themselves.

.. Car makers around the world are under stress from the huge investments needed to develop new technologies used in electric vehiclesand autonomous driving. To trim costs, most are leaning on megasuppliers such as Bosch, Continental AG and Denso Corp. , as well as smaller companies with cutting-edge technology such as IntelCorp. subsidiary Mobileye.

.. Honda, which prides itself above all on its engines, is farming out the development of an electric motor. Hitachi Ltd.’s auto-parts division has the majority stake in a joint venture with Honda that will make electric motors for Honda cars by March 2021. By 2030, two-thirds of its cars will be partially or fully electric

.. Honda also said it would buy electric-car batteries from General Motors Co.