General Motors (NYSE:GM) and Honda Motor (NYSE:HMC) will develop a series of affordable electric vehicles based on a new global architecture, the companies announced Tuesday morning.
The project will utilize GM’s next-generation Ultium battery technology. The tie-up is expected to produce millions of lower-priced EVs, including popular compact crossover vehicles, beginning in 2027, according to officials.
“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,” said GM CEO Mary Barra.
More affordable EVs are crucial to the mass adoption of the emerging technologies. While EVs are growing in popularity, they’re largely priced for luxury buyers. The GM-Honda developed vehicles are expected to be priced below $30,000.
“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles,” said Honda CEO Toshihiro Mibe.
The automakers also said they will discuss future “EV battery technology collaboration opportunities, to further drive down the cost of electrification, improve performance and drive sustainability for future vehicles.”
GM plans to be capable of producing and selling about two million EVs globally by 2025. Honda, a leader in fuel efficient vehicles, has largely focused on hybrid vehicles but is pivoting to offer more all-electric models.
Honda shares faded 47 cents, or 1.7% in New York to $28.00, while GM lost 34 cents to $42.84.
