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GM and Honda to develop affordable electric vehicles that cost less than $30,000

General Motors CEO Mary Barra speaks throughout a go to of the US president to the General Motors Factory ZERO electric automobile meeting plant in Detroit, Michigan on November 17, 2021.

Mandel Ngan | AFP | Getty Images

DETROIT – General Motors and Honda Motor will develop a collection of affordable electric vehicles primarily based on a brand new world structure, the businesses introduced Tuesday morning.

The project will make the most of GM’s next-generation Ultium battery know-how. The tie-up is anticipated to produce hundreds of thousands of lower-priced EVs, together with well-liked compact crossover vehicles, starting in 2027, in accordance to officers.

“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,” GM CEO and Chair Mary Barra mentioned in a press release.

More affordable EVs are essential to the mass adoption of the rising applied sciences. While EVs are rising in reputation, they’re largely priced for luxurious consumers. The GM-Honda developed vehicles are anticipated to be priced beneath $30,000, Ken Morris, GM’s government vp of electric, autonomous and gas cell applications, instructed reporters throughout a name Tuesday morning.

Company officers declined to disclose monetary phrases of the brand new partnership, which is able to end in vehicles for each Honda and GM manufacturers.

The automakers additionally mentioned they are going to focus on future “EV battery technology collaboration opportunities, to further drive down the cost of electrification, improve performance and drive sustainability for future vehicles.”

General Motors revealed its all-new modular platform and battery system, Ultium, on March 4, 2020 at its Tech Center campus in Warren, Michigan.

Photo by Steve Fecht for General Motors

Both automakers are engaged on next-generation battery growth, together with solid-state batteries. Solid-state batteries might be lighter, with higher vitality density, and present extra vary at a decrease cost than as we speak’s EVs with lithium-ion batteries.

“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles,” Toshihiro Mibe, Honda president & CEO, mentioned in a press release.

GM plans to be able to producing and promoting about 2 million EVs globally by 2025. Honda, a frontrunner in gas environment friendly vehicles, has largely targeted on hybrid vehicles however is pivoting to provide extra all-electric fashions.

The new partnership deepens the ties between the 2 corporations concerning all-electric and autonomous vehicles. Honda beforehand invested $750 million in Cruise, GM’s majority-owned autonomous automobile unit, and GM produced two EVs for Honda for the 2024 model-year. The corporations have additionally collaborated on battery modules and gas cell vehicles.

Honda nonetheless plans to develop its personal EV know-how and to begin constructing its personal electric vehicles after the 2 GM-made EVs go on sale in 2024, Rick Schostek, American Honda government vp of company operations, instructed reporters.

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