General Motors has partnered with Honda Motor to co-develop a series of electric vehicles based on a new global architecture, seeking production of millions of vehicles starting in 2027.
The partnership builds on plans for GM to begin building two electric SUVs for Honda starting in 2024.
The two automakers say the new deal is for “affordable” EVs, including compact crossover vehicles, built using GM’s Ultium battery technology. The compact crossover is the biggest selling auto sector in the world with annual volumes of more than 13 million vehicles.
The companies said they will also discuss future battery technology collaboration for electric vehicles in a push to drive down costs.
While EVs are growing in popularity, they’re largely priced for luxury buyers. However, Ken Morris, GM’s executive vice president of electric, autonomous and fuel cell programs says the GM-Honda developed vehicles will be priced below $30,000.
The deal is part of GM’s push to achieve carbon neutrality in its global products and operations by 2040 and eliminate tailpipe emissions from light-duty vehicles in the United States by 2035.
On its part, Honda is looking to attain carbon neutrality on a global basis by 2050.
GM further plans to produce and sell about 2 million EVs globally by 2025. Honda, on the other hand, has largely focused on hybrid vehicles but is pivoting to offer more all-electric models.
General Motors and Honda have a preexisting relationship when it comes to EVs. Honda previously invested $750 million in Cruise, GM’s majority-owned autonomous vehicle unit, and GM produced two EVs for Honda for the 2024 model year. The companies have also collaborated on battery modules and fuel cell vehicles.