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.

Handout | Getty Images

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" .

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.
Entrepreneur Staff

Entrepreneur Staff


Editor's Pick

Related Topics

Business Plans

She Wrote An 'Escape Plan' to Quit Her Job and Move to an Island. Now She's There Generating Nearly $300,000 A Year

"My detailed, step-by-step plan on how I would quit my job and move to a Caribbean island."

Business Plans

How You Can Use the 80/20 Rule to Unlock Success and Maximize Your Impact

Our success is determined by where we focus our efforts.

Thought Leaders

6 Tips From a Clean Beauty Entrepreneur

Sarah Biggers went from a newbie in the natural beauty space to a pro in just a few years. Here are six things she wishes she'd known at the beginning.

Business News

Google Is Mass Deleting Accounts This Week — Here's How To Make Sure Yours Is Safe

The company is reportedly removing inactive accounts on December 1.

Science & Technology

Police Issue Warning About iPhone's 'NameDrop' Feature

How to safely manage the iPhone's latest feature and understand how the technology works.