Automakers General Motors (GM) and Honda (7267) are partnering to develop a series of lower-priced electric vehicles to compete against market leader Tesla (TSLA).
The automakers said their new arrangement is for “affordable” electric vehicles, including compact crossover vehicles, built using GM's Ultium battery technology.
GM Chief Executive Officer (CEO) Mary Barra said the pricing will come in below the $30,000 U.S. price tag planned for the electric Chevrolet Equinox SUV. She said the new lower-priced vehicles would be “attainable” for consumers.
Barra also said the new electric vehicles are part of GM's plan to surpass Tesla in EV sales.
General Motors and Honda also said they will discuss future battery technology collaborations for electric vehicles in a push to drive down costs.
The deal is part of GM's push to achieve carbon neutrality in its global products and operations by 2040 and eliminate tailpipe emissions from light-duty vehicles in the U.S. by 2035. Honda has said it aims to reach carbon neutrality on a global basis by 2050.
