GM and Honda to Jointly Develop a Series of Affordable EVs

General Motors and Honda Motors announced that both auto companies will develop a series of low-cost electric vehicles based on a new joint platform, aiming to produce millions of cars from 2027 in a bid to beat Tesla in sales.

The companies have said that the new deal is focused on affordable EVs along with compact crossover vehicles, that would be built by using GM’s Ultrium battery technology. The compact crossover is the biggest selling auto sector in the world with annual volumes of more than 13 million vehicles, the company said. 

The companies will also discuss the future battery technology collaboration for electric vehicles in a push to take down the costs. This deal is also part of General Motors' push to achieve carbon neutrality in its global products and yo eliminate tailpipe emissions from light-duty vehicles in the United States by 2035.

Honda says that it aims to achieve carbon neutrality worldwide by 2050. The Japanese car manufacturer has a stake in GM's Cruise self-driving automobile subsidiary, and car companies also have a joint venture for developing the Cruise Origin autonomous EV and producing a hydrogen fuel-cell system at a plant in Brownstown, Michigan.