General Motors Co. and Honda Motor Co. Ltd. are expanding their partnership to make a series of "affordable" electric vehicles together based on a new global architecture that will use GM's next-generation Ultium battery technology, the companies said Tuesday.
Honda and GM want to start producing millions of these EVs, including compact crossovers, globally in 2027. Specific prices of the EVs were not addressed in a press release.
The move builds on a North American strategic alliance the companies announced in September 2020 for product development, purchasing and potentially other collaborations.
The automakers have had an ongoing partnership on electrification, fuel-cell and autonomous technology development. High costs needed to develop these technologies also encouraged other automakers to collaborate or even merge, as Fiat Chrysler Automobiles NV did with Groupe PSA to create Stellantis NV.
Through the partnership announced Monday, Honda and GM say they "will work toward standardizing equipment and processes to achieve world-class quality, higher throughput and greater affordability."
The two are also going to discuss future EV battery technology collaboration opportunities to help lower costs.
"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 Mary Barra, GM chair and CEO, in a statement.
Honda President and CEO Toshihiro Mibe said in a statement the companies "will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles."
GM previously agreed to develop two new electric vehicles for Honda based on GM's new electric platform powered by Ultium batteries.
One of those vehicles will be the Honda Prologue, an all-new SUV coming to market in early 2024, Honda said last June.
Honda will also offer an all-electric Acura SUV in 2024. Both EVs "will utilize the highly flexible global EV platform powered by Ultium batteries based on the company's strategic partnership with General Motors," the company said.
Honda has not yet said when production of the vehicles will start and where they will be made.
The Japanese automaker also plans to launch a new series of EV models in the second half of the decade based on its own "e:Architecture."
Honda in 2018 invested $750 million into the autonomous vehicle company Cruise LLC, which GM has a majority stake in.
Honda also invested billions to build the electric and autonomous Cruise Origin shuttle with the AV company.
