Honda & GM take aim for affordable EVs
General Motors and Honda are expanding their cooperation to develop a range of affordable electric cars based on a new global platform using GM’s Ultium battery technology. The plan is to produce “millions” of electric cars globally from 2027, including compact crossover vehicles.
The new range is intended for the North American market, according to identical announcements released by the companies. However, according to a quote from GM CEO Mary Barra, the companies are also targeting the south of the continent as well as China. The collaboration will leverage the technology, design and sourcing strategies of both companies. GM and Honda also plan to standardise equipment and processes.
In addition, the two manufacturers want to discuss possible cooperation in battery technology. The goal here is to further reduce the cost of electrification, improve performance and promote the sustainability of future vehicles.
“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America and China,” explains Mary Barra, GM chairman and CEO. Toshihiro Mibe, President and CEO of Honda: “Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles.”
GM and Honda’s collaboration dates back several years and includes several projects focused on electric and autonomous vehicle technologies. The two companies signed a non-binding memorandum of understanding to form a North American automotive alliance in September 2020. The cooperation for the planned new series is to build on this.
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Why the obsession with making affordable EV’s? GM’s average profit per vehicle is around $1500 so I would have thought that GM would try to go for a more premium market.
GM already well advanced with a premium version. GM is currently testing an ‘’A Sample’’ with SES. This new 400 Wh/kg Lithium-Metal battery will yield at least 50% more range (540 miles) than current lithium-ion batteries (350 miles.) My guess is we will see them in Cadillac around 2025-2026. BTW, both Honda, Hyundai, Greely and SAIC are also participating in the same project with SES. This is a game changer for EVS. Hope this helps.
Well that leaves out the car being electric. Affordable and EV should ever be used in the same sentence.