GM and Honda will create “affordable” electric vehicles together
General Motors Co. and Honda Motor Co. Ltd. are expanding their partnership to jointly manufacture a series of “affordable” electric vehicles based on a new global architecture that will use GM’s next-generation Ultium battery technology, the companies announced Tuesday.
Honda and GM want to start producing millions of these EVs, including compact crossovers, worldwide in 2027. Specific EV pricing was not addressed in a press release.
The move builds on a North American strategic alliance the companies announced in September 2020 for product development, procurement, and potentially other collaborations.
Automakers have an ongoing partnership on electrification, fuel cell and autonomous technology development. The high costs required to develop these technologies have also prompted other car manufacturers to collaborate and even merge, as Fiat Chrysler Automobiles NV did with Groupe PSA to create Stellantis NV.
Through the partnership announced Monday, Honda and GM say they “will strive to standardize equipment and processes to achieve world-class quality, higher throughput and greater affordability.”
The two will also discuss future opportunities for collaboration in EV battery technology to help reduce costs.
“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable electric vehicles globally, including our key markets in North America, South America and China” , GM President and CEO Mary Barra said in a statement.
Honda President and CEO Toshihiro Mibe said in a statement that the companies “will leverage our successful technology collaboration to help achieve dramatic expansion in electric vehicle sales.”
GM previously agreed to develop two new electric vehicles for Honda based on GM’s new electric platform powered by Ultium batteries.
One of those vehicles will be the Honda Prologue, an all-new SUV that will hit the market in early 2024, Honda said last June.
Honda will also offer an all-electric Acura SUV in 2024. Both electric vehicles “will utilize the highly flexible global electric vehicle platform powered by Ultium batteries based on the company’s strategic partnership with General Motors,” the company said. society.
Honda has not yet specified when production of the vehicles will begin and where they will be manufactured.
The Japanese automaker also plans to launch a new series of electric vehicle models in the second half of the decade, based on its own “e:Architecture”.
In 2018, Honda invested $750 million in self-driving vehicle company Cruise LLC, in which GM has a majority stake.
Honda has also invested billions to build the electric, self-driving Cruise Origin shuttle with the AV company.
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