Honda, GM Come Together to Roll Out Affordable EVs from 2027

By Subhash Yadav/ Updated On Wed, Apr 6th, 2022

Highlights :

The automakers will first produce and sell EVs in North American and later expand in other markets like Japan, China and Europe.
The new electric vehicles models will be built on General Motor’s Ultium lithium-ion battery technology.

Honda, GM Come Together to Roll Out Affordable EVs from 2027

Global auto giants Honda Motor and General Motors have announced that they will collaborate to develop affordably priced electric vehicles and enable global production of millions of EVs starting in 2027, including compact crossover vehicles by leveraging technology, design and sourcing strategies of the two companies. The idea is to find economies of scale and lower costs in joint development and sharing.

The new EV models will be based on General Motor’s Ultium lithium-ion battery technology. The official statement by the companies holds that production and sales will first come up in North America and expand later to Japan, China and Europe.

Honda and GM will also work toward standardizing equipment and processes to achieve world-class quality, higher throughput and greater affordability. Honda maintains that the compact crossover segment is the largest in the world, with annual volumes of more than 13 million vehicles.

Honda states both Japanese and American auto manufacturers are interested in reducing the development costs through collaborations and economies of scale allows the electric vehicles to be affordably priced. EVs manufactured by Honda and GM in collaboration are targeted to cost about $24,000 (range price) which will be lesser than EVs of Nissan, Tesla and Honda itself.

GM is accelerating on lithium-metal, silicon and solid-state batteries. Honda is making progress on its all-solid-state battery technology which the company sees as the core element of future EVs. The automakers say that they will cooperate on the next generation battery development.