General Motors, Honda to jointly develop two new electric vehicles

GM and Honda already collaborate on autonomous vehicles and fuel cell vehicle technology.
By : Reuters
| Updated on: 03 Apr 2020, 08:36 AM
File photo (REUTERS)
File photo (REUTERS)
File photo (REUTERS)
File photo

General Motors Co and Honda Motor Co Ltd said on Thursday they would jointly develop two new electric vehicles for Honda and are exploring more ways to expand their alliance.

The new vehicles will use GM batteries and be assembled in GM plants in North America, the companies said. Honda plans to begin selling the vehicles in the United States and Canada in 2024.

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"We are in discussions with one another regarding the possibility of further extending our partnership," Rick Schostek, executive vice president of American Honda said in a statement.

The relationship between GM and its smaller Japanese rival reflects industry pressures to share technology and development costs to meet demands for cleaner vehicles. Those pressures were significant before the Covid-19 pandemic slammed global vehicle demand, and promise to intensify as the crisis saps cash from manufacturers' accounts.

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GM and Honda already collaborate on autonomous vehicles and fuel cell vehicle technology. The companies worked together on the design of an autonomous vehicle called Cruise Origin for GM's majority-owned Cruise Automation unit.

As part of the latest agreement, Honda will use GM's hands-free driver assistance technology, marketed by GM as Super Cruise. Honda also will incorporate GM's Onstar telematics services into the electric vehicles developed with GM.

First Published Date: 03 Apr 2020, 08:36 AM IST
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