Honda and General Motors are collaborating to develop a new era of fully autonomous vehicles. Honda is set to invest $2 billion over the next 12 years into GM’s autonomous vehicle subsidiary, Cruise.
GM and Cruise have been designing self-driving versions of GM’s Chevrolet Bolt EV electric car and aim to launch a fleet for public use as early as next year. With Honda’s engineering expertise and financial backing, Cruise plans to create a new vehicle not based on any existing models, marking a significant advancement in autonomous driving technology that eliminates the need for human controls, according to both companies.
“This is a purpose-built vehicle that will be the first mass-produced vehicle unconstrained by traditional design and the requirement for a driver,” stated GM President Donald Amman.
Amman did not specify when Cruise Automation’s self-driving vehicles will be operational for the general public, whether using the Bolt EV or the upcoming model. The rollout will only occur once it is deemed safe, he reiterated.
Recently, the Japanese tech-focused investment firm Softbank invested $2.25 billion in Cruise, and Honda also acquired a $750 million equity stake. These investments boost Cruise’s overall valuation to $14.6 billion.
“Autonomous vehicles are not merely a vision from Silicon Valley,” commented Zo Rahim, Research Manager at automotive media company Cox Automotive. “Established auto manufacturers are now positioned to shape the future direction and expansion of mass mobility.”
On Wednesday, GM’s stock saw an increase of 2%.
Honda and GM have previously collaborated on developing electric car battery technology and hydrogen fuel cells, which harness energy from hydrogen gas. The new partnership with Cruise Automation extends from their ongoing collaborations.
GM asserts that it is the only company currently implementing production line processes for autonomous vehicles with the self-driving Bolt EV. However, the companies did not disclose where or when the new vehicle would be manufactured.
