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CNN Business
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Honda is partnering with General Motors to develop a new line of fully autonomous vehicles. The Japanese manufacturer plans to invest $2 billion over the next 12 years into GM’s autonomous vehicle division, Cruise.
GM and Cruise have been creating self-driving versions of GM’s Chevrolet Bolt EV, with plans to roll out a fleet for public usage next year. With Honda’s engineering expertise and financial backing, Cruise will work on a new vehicle design that is entirely independent of existing models, representing a significant advancement in autonomous driving technology with no controls for human intervention.
GM President Donald Amman stated, “This is a purpose-built vehicle that will be the first to be produced at scale, free from the traditional limitations of vehicle design and the presence of a driver.”
However, Amman did not provide a specific timeline for when Cruise Automation’s self-driving cars would start transporting the public, whether in the Bolt EV or the new vehicle. They will only be introduced once deemed sufficiently safe, according to Amman.
Recently, the Japanese investment bank Softbank invested $2.25 billion in Cruise, and Honda acquired a $750 million equity stake. These investments boost Cruise’s overall valuation to $14.6 billion.
“Autonomous vehicles are not just a dream born in Silicon Valley,” remarked Zo Rahim, a Research Manager at Cox Automotive. “Established auto manufacturers are well-positioned to shape the future of mass mobility.”
On Wednesday, GM’s stock experienced a 2% increase.
Honda and GM have previously collaborated on electric vehicle battery technology and hydrogen fuel cells, which release energy from hydrogen gas. The new alliance with Cruise Automation stems from their earlier partnerships.
GM claims that it is the only company currently manufacturing autonomous vehicles on a production line with the self-driving Bolt EV. The companies did not disclose details regarding the production location or timeline for the new vehicle.
Honda and General Motors (GM) are collaborating to develop a next-generation fleet of fully autonomous vehicles. Honda plans to invest $2 billion over the next 12 years into Cruise, GM’s autonomous vehicle subsidiary, which focuses on self-driving technology. As part of this partnership, GM and Cruise aim to create a new vehicle model that departs from any existing designs, meaning it will be specifically engineered for autonomous driving, lacking traditional controls for human operation. GM President Donald Amman described this initiative as a revolutionary step, indicating that this vehicle will be produced at scale without the constraints associated with conventional driver-centric vehicle design.
The companies are also working on the self-driving versions of the Chevrolet Bolt EV electric vehicle, with intentions to deploy these vehicles for public use in the near future, although specific timelines for this rollout have not been confirmed. Safety is a priority, and the vehicles will only be released when they are deemed safe for public operation.
In terms of financial backing, Honda’s $750 million investment, alongside SoftBank’s recent $2.25 billion investment in Cruise, places the total valuation of Cruise at approximately $14.6 billion. This capital influx highlights the growing interest and investment in the autonomous vehicle sector. Zo Rahim, a research manager at Cox Automotive, emphasized that the pursuit of autonomous vehicles is not merely limited to Silicon Valley; established auto manufacturers are poised to lead the mass mobility market’s future direction.
On the business front, GM’s stock experienced a 2% increase following the partnership announcement, signaling investor confidence in the collaborative venture. Historically, Honda and GM have worked together on various aspects of electric vehicle technology, including battery systems and hydrogen fuel cells, which are instrumental in advancing the electric vehicle landscape. This collaboration with Cruise extends their joint efforts into the domain of autonomous driving technology.
The specifics regarding the production location and launch dates for the new autonomous vehicle model have not been disclosed by the companies. However, GM has been active in the autonomous vehicle sphere, claiming that it is the only company currently manufacturing self-driving vehicles on a production line. This factor positions GM and Cruise as competitive figures in the growing market for autonomous transportation.
In conclusion, the partnership between Honda and GM, underscored by significant investment into Cruise, reflects a dedicated effort to revolutionize the automotive industry with fully autonomous vehicles. By focusing on purpose-built vehicles that are distinct from traditional designs, the collaboration aims to address safety and technological advancements in self-driving cars, reinforcing the belief that established automotive manufacturers will play a critical role in shaping the future of mobility.
