GM and Honda plan to co-develop affordable electric vehicles

0

title=

This image provided by General Motors shows the GM logo. General Motors and Honda plan to co-develop affordable electric vehicles that will use next-generation Ultium battery technology. The vehicles, which will include a compact crossover, are expected to begin shipping in North America in 2027. (General Motors via AP)

PA

General Motors and Honda plan to co-develop affordable electric vehicles that will use GM’s next-generation Ultium battery technology.

The vehicles, which will include a compact crossover, are expected to begin shipping in North America in 2027.

Doug Parks, GM’s executive vice president of global product development, said in a statement Tuesday that the plan is to have an electric vehicle that is priced lower than the upcoming Chevrolet Equinox EV. GM plans to roll out an Equinox small electric SUV next year with a starting price of around $30,000.

Automakers will work together on battery chemistry, vehicle engineering and manufacturing to cut costs as they prepare to build what the companies predict will be millions of electric vehicles for sale worldwide from of 2027.

An electric vehicle priced under $30,000 with a range of over 300 miles per charge would be attractive to buyers around the world, said Ivan Drury, senior executive at Edmunds.com. “This is where so many people consider both internal combustion engines and electric vehicles,” Drury said. “Right now, when you look at what’s for sale, there’s nothing going on in this space that ticks the box for electric vehicles going the distance.”

Drury said Honda has been building vehicles in the United States for many years, so it shouldn’t be a big adjustment to work with GM.

Honda currently needs GM’s battery technology, so this agreement allows it to continue working with the Detroit automaker to learn, and also to share development costs. “GM may also share some costs to help fund this costly transition” to electric vehicles, Morningstar analyst David Whiston said.

Last year, the companies announced that GM would build a Honda SUV and an Acura SUV using its electric vehicle architecture and Ultium-branded battery system. The companies said at the time that the Honda SUV would be called the Prologue and that both SUVs would have Honda-designed bodies, interiors and driving characteristics. The Prologue will go on sale in early 2024, and the Acura will soon follow.

Honda also said in June that it plans to make its own electric vehicles later in the decade.

GM and Honda have partnered successfully over the years. In 2013, the companies began working together on the co-development of next-generation fuel cell system and hydrogen storage technologies.

In 2018, Honda and GM announced that they would partner to develop batteries for electric vehicles, primarily for the North American market.

Share.

Comments are closed.