Honda R&D Co., Ltd. ("Honda R&D"), a research and development subsidiary of Honda, has acquired all of the outstanding shares of California-based Drivemode, Inc.
In a statement, Honda said that the acquisition was intended to strengthen Honda's new value creation in the areas of digital and connected mobility products. With the acquisition, Drivemode became a wholly-owned subsidiary of Honda R&D.
Drivemode is a startup that develops and operates smartphone-based connected services. Honda R&D and Drivemode have been collaborating and conducting joint development activities since 2015 through the Honda Xcelerator program, an open innovation program Honda has been pursuing on a global basis.
In April 2019, Honda established the Digital Solution Center within Honda R&D to focus on creating new value through utilization of digital technologies. With the acquisition, Honda said, the Digital Solution Center and Drivemode will work together to accelerate new value creation in the area of connected mobility services, which will contribute to Honda's vision to serve people worldwide with the "joy of expanding their life's potential."
"As a step toward the realization 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. We will strive to offer connected services which will please our customers while leveraging our respective strengths."
"Since Drivemode began working with Honda in 2015, our entire company has been inspired and impressed by the entrepreneurial spirit driving Honda's 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, chief executive officer of Drivemode. "With the support of Honda, the Drivemode team can have a lasting impact on actual vehicles and drivers around the world at scale. Our focus has always been on providing safe, meaningful software solutions for drivers, and with Honda's hardware capabilities, we can continue innovating on mobile-based technology for connected cars and motorcycles."
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].