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GM and Honda expand EV partnership, first cars to hit market 2027

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New deal covers “affordable” electric vehicles, including compact crossovers, built using GM’s Ultium battery technology

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General Motors and Honda announced on Tuesday that they would co-develop a series of electric vehicles based on a new common platform, enabling the production of millions of cars from 2027.

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The announcement expands GM’s plans to start building two electric SUVs for Honda from 2024 – the Honda Prologue and an Acura model.

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 auto sector, with annual volumes of more than 13 million vehicles, the companies said.

The companies declined to say how much they are investing in the new collaboration.

GM executive vice president Ken Morris said on a conference call that the price will be lower than the expected $30,000 price tag for the Chevrolet Equinox electric SUV. The companies said they would also discuss future collaboration on battery technology for electric vehicles in a bid to reduce costs.

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“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable electric vehicles globally, including our key markets in North America, South America and China” , GM chief executive Mary Barra said in a statement.

The agreement is part of GM’s efforts 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 said it aims achieve global carbon neutrality by 2050. .

The Japanese automaker has a stake in GM’s self-driving car subsidiary Cruise, and the automakers are co-developing the Cruise Origin self-driving 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.


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