GM and Honda have agreed to jointly develop two all-new electric vehicles for Honda.
The vehicles will be on GM’s global EV platform powered by proprietary Ultium batteries, but Honda will design the exteriors and interiors. The platform will be engineered to match the way Honda vehicles handle.
For GM this is “another step” toward its vision of an all-electric future and will provide a profitable EV business “through increased scale and capacity utilization,” said Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain.
About a month ago, GM CEO Mary Barra said GM will spend $20 billion between now and 2025, about $3 billion a year, on EV development.
The vehicles will be manufactured at GM plants in North America, but GM is not specifying which plants.
Coronavirus impact:Target to limit number of shoppers in stores, as a new safety measure
Laid off or furloughed?:We answer your questions about unemployment benefits
GM is retooling its Detroit-Hamtramck plant to build all-electric vehicles in about 18 months, so it may be a candidate. A GM spokeswoman said the company will offer more details as it gets closer to the launch date.
These new electric vehicles are expected to go on sale in the 2024 model year in Honda’s United States and Canadian markets, the companies said.
GM and Honda have an ongoing relationship in EV development. They have worked on fuel cells and the Cruise Origin, an electric, self-driving car revealed in San Francisco early this year.
Cruise, GM’s self-driving vehicle unit, has been testing self-driving cars in San Francisco for the last few years. GM has said it will build the Origin at Detroit-Hamtramck.
Honda also joined GM’s battery module development efforts in 2018.
“This expanded partnership will unlock economies of scale to accelerate our electrification roadmap and advance our industry-leading efforts to reduce greenhouse gas emissions,” said Rick Schostek, executive vice president of American Honda Motor Co., Inc. “We are in discussions with one another regarding the possibility of further extending our partnership.”
As part of the agreement, Honda will incorporate GM’s OnStar safety and security services into the two EVs and integrate them with HondaLink. Honda also plans to make GM’s hands-free advanced driver-assist technology available.