The US automotive parts manufacturer, Delco Remy International, and the Japanese electronics manufacturer, Hitachi, are to invest SFr6.86 million ($4 million) each in a joint venture to produce automotive starting motors and alternators in Switzerland.

The venture, called Hitachi Remy Automotive, will be based in the Swiss town of Zug, and will serve the European and North American markets.

The companies said they would share their starter/alternator technologies and jointly introduce products to the global market through their existing worldwide manufacturing operations and sales organizations.

Yoshiaki Honda, of Hitachi, has been appointed chief executive officer of the new venture. The chief financial officer is Janos Szabo, who previously worked for Delco Remy's European arm.

Rick Stanley, president of the Delco Remy, said the venture would combine his company's geographical presence - it has plants in both Poland and Mexico - with Hitachi's technology expertise in a fragmented marketplace.

Stanley said that the alternator business was overly competitive, with eight companies, each with about a five percent market share.

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