GM, Honda partner to develop two new all-electric vehicles

Michael Wayland Apr 02 2020

H/O: GM CEO Mary Barra during EV Day

GM CEO and chairman Mary Barra speaks during an “EV Day” on March 4, 2020 at the company’s tech and design campus in Warren, Mich., a suburb of Detroit -- GM
 

General Motors and Honda Motor have agreed to jointly develop two new all-electric vehicles for the Japanese automaker, the companies announced Thursday.

The vehicles are scheduled to be released for the 2024 model-year, the companies said. They will feature GM’s proprietary “Ultium” battery technology, but their designs will be exclusive to Honda and the vehicle platform “will be engineered to support Honda’s driving character.”

Honda will also offer GM’s hands-free advanced driver-assist technology, known as Super Cruise, and the Detroit automaker’s OnStar safety and security services in the two all-electric vehicles.

Shares of GM were slightly up during extended-hours trading after closing Thursday at $18.19, down 5.6%.

Neither company disclosed the financial terms of the deal, which deepens the ties between the two companies regarding all-electric and autonomous vehicles. Previous collaborations include Honda investing $750 million in Cruise, GM’s majority-owned autonomous vehicle unit; development of the Cruise Origin autonomous vehicle; and work on battery modules and fuel cell vehicles.

Doug Parks, GM executive vice president of global product development, purchasing and supply chain, said the agreement is “another step on our journey to an all-electric future and delivering a profitable EV business through increased scale and capacity utilization.”

“We have a terrific history of working closely with Honda, and this new collaboration builds on our relationship and like-minded objectives,” he said in a release.

GM previously said vehicles with its Ultium batteries will be capable of 400 miles or more, charge more than 100 miles in 10 minutes and accelerate from zero to 60 miles per hour in as low as three seconds.

“This collaboration will put together the strength of both companies, while combined scale and manufacturing efficiencies will ultimately provide greater value to customers,” said Rick Schostek, executive vice president of American Honda Motor, in a statement. “This expanded partnership will unlock economies of scale to accelerate our electrification roadmap and advance our industry-leading efforts to reduce greenhouse gas emissions.”

SOURCE: CNBC

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