GM and Honda Will Co-develop Affordable EVs Targeting the World’s Most Popular Vehicle Segments
In an exciting development for the automotive industry, General Motors (NYSE: GM) and Honda (NYSE: HMC) announced today that they will be enhancing their existing partnership by jointly developing a range of affordable electric vehicles. These vehicles will be built on a new global architectural platform and will incorporate the cutting-edge Ultium battery technology. This collaboration marks a significant step forward in both companies’ commitment to a sustainable and electric future. The partnership not only signals their dedication to innovation but also their shared vision for a cleaner, greener tomorrow.
Building upon their commitment to an eco-friendly future, the two titans, General Motors and Honda, have also set the ambitious goal of enabling the global production of millions of Electric Vehicles (EVs) starting in 2027. This venture will include compact crossover vehicles, a segment that is currently the largest in the world, boasting annual volumes exceeding 13 million vehicles.
As partners, these companies will leverage their respective technological prowess, design expertise, and sourcing strategies to make this goal a reality. They aim to standardize equipment and processes in order to deliver world-class quality, higher throughput, and greater affordability. This pursuit of standardization is a clear indication of their commitment to making electric vehicles an attainable and affordable option for a wider audience, further solidifying their dedication to a more sustainable future.
“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America and China,” said Mary Barra, GM chair and CEO. “This is a key step to deliver on our commitment to achieve carbon neutrality in our global products and operations by 2040 and eliminate tailpipe emissions from light duty vehicles in the U.S. by 2035. By working together, we’ll put people all over the world into EVs faster than either company could achieve on its own.”
“Honda is committed to reaching our goal of carbon neutrality on a global basis by 2050, which requires driving down the cost of electric vehicles to make EV ownership possible for the greatest number of customers,” said Toshihiro Mibe, Honda president & CEO. “Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles.”
“The progress we have made with GM since we announced the EV battery development collaboration in 2018, followed by co-development of electric vehicles including the Honda Prologue, has demonstrated the win-win relationship that can create new value for our customers,” said Shinji Aoyama, Honda senior managing executive officer. “This new series of affordable EVs will build on this relationship by leveraging our strength in the development and production of high quality, compact class vehicles.”
“Our collaboration with Honda and the continuing development of Ultium are the foundation of this project, utilizing our global scale to enable a lower cost foundation for this new series of EVs for millions of customers,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain. “Our plans include a new all-electric product for North America positioned at a price point lower than the upcoming Chevrolet Equinox EV, building on the 2 million units of EV capacity the company plans to install by the end of 2025.”
Reflecting on the history of their collaboration, General Motors and Honda have fostered a close working relationship spanning several years, marked by numerous projects targeting breakthroughs in electric and autonomous vehicle technologies. The initial seeds of partnership were sown in 2013 when the companies ventured into co-developing a next-generation fuel cell system and hydrogen storage technologies. In 2018, Honda stepped up its collaboration efforts by joining GM’s EV battery module development initiatives, illustrating a deepening commitment to shared technological advancement.
The following year, in 2020, the companies announced ambitious plans to co-develop two distinct EVs. One of these is the much-anticipated Honda Prologue, set to make its debut in early 2024, with an Acura EV SUV hot on its heels. Their collaborative efforts extend beyond manufacturing to encompass shared initiatives like Cruise. Both companies are actively involved in developing the Cruise Origin, a pioneering project that aims to create one of the world’s first purpose-built, driverless vehicles for ride-hailing and delivery services. This ongoing relationship signals an unwavering commitment to innovation and a shared vision for the future of transportation.
