Tie Up Between Honda And GM Will Make EVs More Affordable

Honda and GM have announced the expansion of their working relationship to enable the two companies to produce electric vehicles with improved technology and a lower price. The collaboration is expected to produce millions of electric vehicles globally, with the first models going on sale in 2027.

The partnership will use a global architecture with next-generation Ultium battery technology. Multiple vehicle segments will be targeted, with particular emphasis on the compact crossover segment. Compact crossovers is the largest vehicle segment globally, with over 13 million vehicles produced annually.

The two companies will also be looking for opportunities to expand their collaboration further to help develop electric vehicle batteries and drive the cost of electrification down overall. The partnership will leverage both manufacturers’ technology, design, and sourcing strategies.

Partnerships such as this are important for the development of electric vehicles. The larger the volume of vehicles produced, the cheaper the platform becomes. Many consumers have been eagerly waiting for electric vehicles in the under $30,000 range.