General Motors and Honda create alliance to produce millions of electric cars The alliance will help the two companies meet the goal of achieving carbon neutrality in their products and operations.
By Entrepreneur Staff •
This article was translated from our Spanish edition.
One thing is irrefutable: electric vehicles are gaining ground. It is more and more common to see them rolling through the streets of cities and car manufacturers are expanding their offer in an industry that for more than a century has been dominated by fuels. This morning Honda Motor Co. and General Motors (GM) announced that they will form an alliance to develop a series of electric cars based on a shared platform that will allow them to produce millions of units from the year 2027.
The idea of the two automakers is to be able to produce 100% electric compact crossovers at an affordable price using Ultium, GM's battery technology. In a press release, Mary Barra , CEO of GM, commented that automakers "will share their best technology, design and manufacturing strategies to offer affordable and desirable electric vehicles on a global scale, including key markets in North America, South America and China" . Toshihiro Mibe , president of Honda Motor, assured that what they are looking for is "to help achieve a spectacular expansion in sales of electric vehicles" .
Today @GM is announcing the next chapter in our collaboration with @Honda . Continuing GM's mission to put everyone in an EV, we're working together to make #ElectricVehicles more affordable and accessible using next-generation Ultium technology as the foundation.
— Mary Barra (@mtbarra) April 5, 2022
A compact crossover is a tall, compact car that resembles an SUV, although designed for an urban environment. According to the statement, the compact crossover segment is the largest in the world with annual sales of more than 13 million units. Models that fall into this category include the Hyundai Bayon, Suzuki Ignis, Fiat Panda, Ford Ecosport, and Honda HR-V, among others.
Both companies seek to achieve carbon neutrality in all their products and operations. GM has set the goal for 2040 and Honda for 2050. The two companies have been collaborating actively since 2013 and in 2024 they will launch the Honda Prologue, an electric pickup truck and Acura's first electric SUV, possibly called ADX.
