GM And Honda Will Work Together To Produce Affordable EVs

Industry News / 11 Comments

The two companies want to produce 13 million EV compact crossovers by 2027.

General Motors and Honda have announced plans to take their relationship to the next level. The American and Japanese giants will be codeveloping a series of affordable electric cars based on an all-new global architecture, powered by GM's Ultium battery technology.

The two companies are currently planning to produce millions of EVs starting in 2027. They will be leveraging their technology, design, and part-sourcing strategies. Part of this new deal is also creating greater standardization, which will result in greater output, increased quality, and greater affordability.

At first, GM and Honda will target the compact crossover segment. It makes complete sense as this segment sold more than 13 million vehicles annually. GM and Honda will also discuss future EV battery technology collaboration opportunities to further decrease the price of EVs.

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GM is already hard at work on technologies like lithium-metal, silicon, and solid-state batteries and production methods that will make it easier to upgrade batteries physically. Honda is making quick progress on its solid-state battery technology.

"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. "This is a key step to deliver on our commitment to achieve carbon neutrality in our global products and operations by 2040 and eliminate tailpipe emissions from light-duty vehicles in the US by 2035. By working together, we'll put people all over the world into EVs faster than either company could achieve on its own."

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"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."

Honda and GM first teamed up in 2018, and the results have been positive so far. Honda first unveiled the Prologue for the American market, though the little Honda e has been selling up a storm internationally.

GM is arguably making even more waves following the recent introduction of the Hummer EV, the Cadillac Lyriq, and the Chevy Silverado EV.

All of the above use GM's Ultium battery technology, which offers a variety of drivetrain options, including FWD and AWD applications. As for what it will look like, we expect something along the lines of the recently unveiled Honda e:Ny1 compact crossover.

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