GM, Honda team up to produce self-driving vehicles

Wednesday October 03, 2018
Written by The Associated Press
October 3, 2018 – General Motors and Honda will team up on self-driving vehicle technology as big automakers and tech giants race to develop the next generation of personal transportation.

Japan's Honda Motor Co. will invest $2.75 billion in the autonomous vehicle unit run by General Motors Co., called GM Cruise.

The two automakers are already partnering on fuel cell vehicles and announced in June that they are developing batteries for electric vehicles, mainly for the North American market.

The goal, the companies say, is to develop an autonomous vehicle that can be produced at a high volume for global deployment. The companies will also explore global opportunities for commercial deployment of the Cruise network.

Michelle Krebs, an executive analyst with Autotrader, believes the partnership is critical in the development of such advanced technology because it requires huge investments that have little promise of a quick payoff.

Honda will make an immediate investment of $750 million, and spend $2 billion over 12 years on the project.

"Honda chose to collaborate with Cruise and General Motors based on their leadership in autonomous and electric vehicle technology and our shared vision of a zero-emissions and zero-collision world,'' says Seiji Kuraishi, an executive vice-president at Honda.

In May, the Japanese tech firm investment firm SoftBank announced it was taking a 20 per cent stake in Cruise for $2.25 billion. GM had said it planned to use the cash infusion to roll out a robotaxi service in at least one major city starting next year. SoftBank also owns big stakes in Uber as well as in India's Ola ride service and Didi Chuxing, China's top ride hailing firm.

GM has been widely viewed as being in second place in the autonomous vehicle race, with Google's Waymo on top. Waymo said in May that it would buy up to 62,000 more minivans from Fiat Chrysler to expand its ride-hailing venture. Waymo and Fiat Chrysler also said that they were discussing the use of Waymo technology in Fiat-Chrysler self-driving vehicles that would be sold to the public.

Shares of Detroit-based GM surged more than five per cent before the opening bell, while Honda's stock fell more than two per cent.

News from © The Canadian Press Enterprises 2018

Add comment


Security code
Refresh

Subscription Centre

 
New Subscription
 
Already a Subscriber
 
Customer Service
 
View Digital Magazine Renew

Events

SPS IPC Drives
November 27-29, 2018
AI World Conference & Expo
December 3-5, 2018
Motor & Drive Systems 2019
January 23-24, 2019
ARC World Industry Forum
February 4-7, 2019
Hannover Messe 2019
April 1-5, 2019

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.