The France-based automobile company, Faurecia SA, is set to purchase a majority stake in Hitachi’s division Clarion for approximately $710mn, according to Nikkei.
The report stated that Hitachi has agreed to sell most of its stake to Faurecia in a deal that will make the company a majority owner.
Japanese giants, Hitachi, confirmed it was considering a number of options but has yet to make a firm decision, Reuters reports.
With a number of automotive manufacturers adopting new technologies such as self-driving vehicles, autonomous driving and connected cars, it has meant that companies are having to react to change in order to keep up with the latest digital trends.
With an increasing number of drivers utilising their smartphones, it has seen Clarion expand into new areas such as autonomous parking.
Clarion revealed on Thursday (25 October) that the company’s operating profit has seen a decline of 56% from the previous year.
The news comes after it was revealed earlier in the month that Hitachi was deliberating selling its stake in a fleet of high-speed trains in the UK for around $775mn.