In short: General Motors and Honda have announced plans to jointly develop a range of affordable electric vehicles based on next-generation Ultium battery technology. The partnership will leverage the companies’ technology, design and strategies to power production in 2027, serving key markets including North America, South America and China.
The duo will also work to standardize processes and equipment to increase productivity and reduce costs.
GM CEO Mary Barra said that by working together, they can get people into electric cars faster than either company alone.
“Our plans include a new all-electric product for North America at a price lower than the upcoming Chevrolet Equinox electric vehicle,” said Doug Parks, executive vice president of global product development, purchasing and supply chain at GM.
Until recently, one of the main barriers to adoption has been cost. Electric cars won’t go mainstream until they’re available at various price points. Cars like the Model 3 have brought us closer to that goal, but more variety is still needed.
The partnership will also help GM meet its commitment to eliminate U.S. passenger vehicle emissions by 2035 and achieve global carbon neutrality by 2040. Meanwhile, Honda is on track to achieve carbon neutrality by 2050.
This is not the first time the two automakers have joined forces. In 2018, GM and Honda teamed up to speed up development of advanced battery chemistry for electric vehicles. GM also helped Honda co-develop the all-electric Prologue SUV, due out in 2024.