Starting in 2027, General Motors and Honda Motor Co will be selling a range of affordable electric vehicles under $30,000 based on a new global architecture.
The agreement, announced by the two companies in a joint statement Tuesday, would enable global manufacturing of millions of electric vehicles, including compact crossovers based on GM’s Ultium battery technology.
GM and Honda will also work to standardize equipment and procedures in order to provide consumers with better quality, greater throughput, and more economical EVs.
The compact crossover segment is the largest in the world, with annual sales volumes of more than 13 million vehicles.
In addition, GM and Honda will examine future EV battery technology partnership potential in order to lower the cost of electrification, increase performance, and ensure future vehicle sustainability.
GM is already striving to advance new technologies such as lithium-metal, silicon, and solid-state batteries, as well as manufacturing methods that can be utilized to swiftly upgrade and update battery cell manufacturing processes.
Meanwhile, Honda is making headway with its all-solid-state battery technology, which it regards as a key component of future electric vehicles. Honda has set up a demonstration line for all-solid-state batteries in Japan and is moving closer to mainstream manufacturing.
“GM and Honda will share our best technology, design, and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America, and China,” said Mary Barra, GM chair and CEO.
The Detroit-based car manufacturer has been committed to achieving carbon neutrality in global products and operations by 2040 and aims to eliminate tailpipe emissions from light-duty vehicles in the U.S. by 2035.
“Honda is committed to reaching our goal of carbon neutrality on a global basis by 2050, which requires driving down the cost of electric vehicles to make EV ownership possible for the greatest number of customers,” said Toshihiro Mibe, Honda president & CEO.
“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles.”
Both car manufacturers have already been collaborating in EV battery development since 2018 followed by the co-development of electric vehicles including the Honda Prologue to be launched in early 2024 and soon followed by releasing Acura’s first EV SUV.
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