General Motors and Honda announced this week that they would develop a series of low-cost electric vehicles based on a new common platform, potentially producing millions of cars from 2027. Goal: beat Tesla in terms of sales results.
The announcement expands GM’s plans to begin production of two electric SUVs for Honda from 2024 – the Honda Prologue and an Acura model.
Honda/GM agreement to produce EVs at an “affordable” price
The automakers said the new deal is for “affordable” electric vehicles, including compact crossovers, built using GM’s Ultium battery technology. The compact crossover is the world’s best-selling automotive sector with annual volumes of more than 13 million vehicles, according to the two companies.
The companies declined to say how much they would put on the table as part of their new collaboration. However, they said they would also discuss future collaboration on battery technology for electric vehicles in an effort to reduce costs.
EV priced below $30,000
GM chief executive Mary Barra said on Tuesday the price would be lower than the $30,000 expected for the Chevrolet Equinox electric SUV. Adding that the new low-cost vehicles would be “accessible electric vehicles”.
GM wants to expand its portfolio of electric vehicles
“We have a very important goal … that by the middle of the decade, by 2025, we will be selling more electric vehicles in the United States than anyone else and to do that you need to have a portfolio of vehicles” , said Mary Barra, indicating that GM is planning a wide range of small and large electric vehicles. “We can certainly scale up and do it quickly,” she added.
GM steps up efforts to achieve carbon neutrality
The agreement is part of GM’s efforts to achieve carbon neutrality in its global models and operations by 2040 and eliminate pollutant emissions from light-duty vehicles in the United States by 2035. Honda said it will aimed to achieve global carbon neutrality by 2050.
Honda and GM partners for Cruise and hydrogen
The Japanese automaker has a stake in Cruise, GM’s self-driving car subsidiary. The two partners are co-developing the Cruise Origin autonomous electric vehicle. The companies also have a joint venture to develop and produce hydrogen fuel cell systems at a plant in Brownstown, Michigan.
“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in electric vehicle sales,” said Honda CEO Toshihiro Mibe.