Honda Financial is an offshoot of Honda Motor Co. which is owned by the Japanese automaker.
The company plans to launch its own hybrid electric car and a high-tech version of the Honda Fit in the first quarter of 2018.
The money is part of a $100 million U..
S.-Japan grant to build the vehicle, which is the company’s second-largest acquisition in recent years.
The funding will help to finance a project that has been on hold for years because of a lack of a government-backed loan guarantee.
The project is part a broader plan to help spur the electric car sector, said Scott A. Lively, Honda Financial’s executive vice president of corporate development and operations.
“We are making significant investments in our new electric vehicle technology, our electric vehicle manufacturing capabilities, our customer acquisition and manufacturing capabilities,” Lively said in a statement.
The grant is part the company is working on financing a $3.6 billion car-sharing network in the U, according to the Financial Times.
The network will be powered by Honda’s EV batteries, the company said.
The first car-share network is set to launch in 2020 in Detroit, according the Times.
Lately, the automaker has focused on the mass market, and that is what has attracted the money from the Japanese government.
The funds will go toward expanding and upgrading the electric vehicle infrastructure in Japan, and investing in electric vehicle charging stations, electric car charging infrastructure and the development of electric vehicle sales and marketing programs, Lively added.
The financing is part.
Honda is also funding the development and manufacturing of a battery-powered electric car called the Hybrid Hybrid 2, according The Wall Street Journal.
It will be a crossover vehicle that will feature a new, battery-electric engine.
The Hybrid 2 will go on sale in 2021.
Honda and other Japanese automakers have been struggling with anemic sales.
In the first nine months of 2018, the Japanese auto maker had sales of just over 100,000 vehicles.
Its share price tumbled more than 20% in after-hours trading.