GM, Honda to Jointly Develop Lower-Priced EVs

General Motors and Honda Motor said on Tuesday they would develop a series of lower-priced electric vehicles (EVs) based on a new joint platform, producing potentially millions of cars from 2027 in a bid to beat Tesla in sales.

The announcement expands on plans for GM to begin building two electric SUVs for Honda starting in 2024 – the Honda Prologue and an Acura model.

The automakers said the new deal is for “affordable” EVs, including compact crossover vehicles, built using GM’s Ultium battery technology.

The compact crossover is the biggest selling automotive sector in the world with annual volumes of more than 13 million vehicles, the companies said.

Honda and GM declined to say how much they are investing as part of the new collaboration.

The Price Tag

GM chief executive Mary Barra said the pricing will come in below the $30,000 tag planned for the electric Chevrolet Equinox SUV. She said the new lower-priced vehicles would be “attainable EVs.”

She said the new vehicle is part of GM’s plan to surpass Tesla in EV sales.

“We have a very important goal… that by mid-decade, by 2025, we’ll sell more EVs in the US than anyone else and to do that, you need to have a portfolio of vehicles,” Barra said, noting GM plans a wide range of small to large EVs.

“We definitely can scale and can do it quickly,” she added.

The companies said they will also discuss future battery technology collaboration for EVs in a push to drive down costs.

Carbon Neutrality Goal

The deal is part of GM’s push to achieve carbon neutrality in its global products and operations by 2040 and eliminate tailpipe emissions from light-duty vehicles in the United States by 2035.

Honda has said it aims to reach carbon neutrality on a global basis by 2050.

The Japanese carmaker owns a stake in GM’s Cruise self-driving car subsidiary and the carmakers are co-developing the Cruise Origin autonomous EV.

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 the sales of electric vehicles,” Honda chief executive Toshihiro Mibe said.

• Reuters, with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.