General Motors (GM) has revived its technology partnership with Honda.
The two companies are cooperating on a series of affordable electric vehicles using a new global architecture with the next generation of GM’s signature Ultium battery technology.
Their target is “global production of millions of EVs starting in 2027,” according to the companies’ announcement.
“Honda and GM’s announcement today about a new crop of electric crossovers couldn’t have come at a more ideal time,” said Robby DeGraff, industry analyst for AutoPacific.
“With gas prices remaining high and an avalanche of electric vehicles on the way, affordability is a big barrier when it comes to encouraging more consumers towards EV ownership,” he stated. “Thankfully we’ve been seeing automakers introduce far more affordable EVs with a great realistic range below the almost-$50,000 average transactional price of a new vehicle sold today.”
“The progress we have made with GM since we announced the EV battery development collaboration in 2018, followed by co-development of electric vehicles including the Honda Prologue, has demonstrated the win-win relationship that can create new value for our customers,” said Shinji Aoyama, Honda Senior Managing Executive Officer. “This new series of affordable EVs will build on this relationship by leveraging our strength in the development and production of high quality, compact class vehicles.”
This will specifically include compact crossover SUVs, that would slot into the market segment below the mid-sized Chevrolet Equinox EV that is planned for 2023, GM said.
The new partnership aims to exploit the two companies’ technology, design, and sourcing strategies while aiming to standardize equipment and processes to achieve world-class quality, higher throughput, and greater affordability, the companies said.