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General Motors and Honda have signed a partnership: how it helps us, what it means for consumers

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GM and Honda will also aim to standardize equipment and processes for better quality, higher efficiency and more affordable electric vehicles for consumers.

General Motors and Honda plan to jointly develop a line of affordable electric vehicles with a focus on compact crossovers starting in 2027.

Automakers say the partnership will enable the global production of “millions” of electric vehicles, including compact crossovers. The vehicles will be based on a new global electric architecture powered by GM’s Ultium battery technology, GM and Honda said in a joint statement on Tuesday.

GM and Honda will also aim to standardize equipment and processes for better quality, higher efficiency and more affordable electric vehicles for consumers. They will also discuss the potential for collaborating on EV battery technology to reduce the cost of electrification and improve performance.

Both carmakers have already set ambitious targets for electric vehicles. Honda aims to achieve global carbon neutrality by 2050, and GM hopes to have a fully electric range by 2035.

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“Working together will bring people around the world into electric vehicles faster than any single company could achieve,” GM CEO Mary Barra said in a statement.

Millions of vehicles

The jointly developed range of electric vehicles will focus mainly on the compact crossover segment, automakers said, accounting for 13 million in annual sales.

The companies declined to offer a range of price points for the new electric vehicle line, but Ken Morris, GM’s chief executive for autonomous, autonomous and fuel cell programs, said the vehicles would be positioned under the Chevrolet Equinox EV. as size as well as price. GM said the Equinox EV, to be launched in 2023, will start at around $ 30,000.

Rick Schostek, executive vice president of corporate operations at American Honda, said the carmaker will seek price parity with its internal combustion vehicles, but noted that lowering electric vehicle prices to ICE levels will take time.

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Automakers plan to build electric vehicles at their existing factories. They determine how to split production between Honda and GM.

The plan is part of the North American carmakers’ alliance, which they announced in September 2020. The alliance was based on a previous partnership in which GM would help develop two new Honda electric vehicles powered by Ultium batteries. the GM.

“We are very excited about Honda, compared to the previous announcement in 2020, when GM had a platform ready and we were able to use it,” said Schostek. “Here, we can work with GM to promote a new architecture. It will be very flexible, so that each of our companies can position the products that will grow from it in the right place in our range. ”

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