General Motors Co. and Honda Motor Co. plan to jointly develop a line of affordable electric vehicles,
further deepening strategic ties as they work to bring costly plug-in technology to the mass market.
GM and Honda stated that they plan to co-operate on underlying technology that would be used to produce several electric models, including compact sport-utility vehicles.
The first of the vehicles, which likely would be priced below $30,000., won’t be ready until 2027, the companies said.
*Honda tweet on deal with GM
Honda and @GM plan to expand the two companies’ relationship by codeveloping a series of affordable #EVs based on new global architecture using next-gen Ultium battery cells. Together they will enable global production of millions of EVs starting in 2027.https://t.co/8iMCdj8VUW pic.twitter.com/KLnChHau7d
— Honda (@Honda) April 5, 2022
The auto makers said splitting development expenses and working together to reduce battery costs, and would allow them to drive down the price while producing electrics at scale globally.
The new system eventually would be used in millions of cars sold by both companies, Companies confirmed.
Car companies increasingly are joining forces on engineering projects, outside of mergers or cross-ownership deals, to defray the high costs of developing electric cars and other advanced technologies.
The GM-Honda project extends work between the companies in other areas, including autonomous cars.
Relatively high prices for electric cars remains a key hurdle to broader adoption.
The average price paid for an EV in the U.S. is around $60,000, compared with about $45,000 for all vehicles, cleantechnica reveals.
Other auto makers have worked together on electric cars to contain costs.
Subaru’s Solterra SUV, expected to go on sale in the U.S. later this year, was developed with Toyota Motor, while Ford Motor, is planning two electric vehicles for the European market using technology provided by Germany’s Volkswagen AG