General Motors and Honda Motor Co. said Tuesday they will develop a range of low-cost electric vehicles based on a new joint platform that will potentially produce millions of cars by 2027 to beat Tesla in sales.
General Motors and Honda Motor Co. said Tuesday they will develop a range of low-cost electric vehicles based on a new joint platform that will potentially produce millions of cars by 2027 to beat Tesla in sales.
The announcement expands on GM’s plans for Honda to begin manufacturing two electric SUVs – the Honda Prologue and Acura models – in 2024.
The automakers said the new deal is for “affordable” EVs, including compact crossover vehicles, built using GM’s Ultium battery technology. The companies said the compact crossover is the best-selling auto sector in the world, with more than 13 million vehicles annually.
The companies declined to say how much they are investing as part of the new collaboration.
GM Chief Executive Mary Barra said at an Axios event on Tuesday that pricing for the electric Chevrolet Equinox SUV will come down to the $30,000 price tag. She said the new low-cost vehicles would be “attainable EVs.”
It said the new vehicle is part of GM’s plan to overtake Tesla in EV sales.
“We have a very important goal… that by mid-decade, by 2025, we’ll be selling more EVs in America than anyone else, and to do that, you need to have a portfolio of vehicles,” Barra said. GM is planning a wide range of EVs from small to large. “We can certainly scale up and do it quickly.”
The companies said they will also discuss future battery technology collaborations for electric vehicles to reduce costs.
The deal is part of GM’s push to achieve carbon neutrality in its global products and operations by 2040 and to eliminate tailpipe emissions from light-duty vehicles in the United States by 2035.
Honda has said that 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 is co-developing the carmaker Cruise Origin Autonomous EV. There is also a joint venture of the companies 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 dramatic expansion in electric vehicle sales,” said Honda CEO Toshihiro Mibe.
(Reporting by Ben Kellman in Detroit and David Shepardson in Washington; Editing by Susan Fenton and Bernadette Baum)
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