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UJ Business
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Honda and General Motors are collaborating to produce a new line of fully autonomous vehicles. Honda plans to invest $2 billion over the next 12 years into GM’s subsidiary focused on autonomous driving, Cruise.
GM and Cruise have been engaged in the design and development of self-driving variants of GM’s Chevrolet Bolt EV electric vehicle, intending to roll out a fleet for public operations in the upcoming year. Thanks to Honda’s engineering and financial input, Cruise will start creating a new vehicle that does not derive from any current model, as stated by the companies. This vehicle will signify a major advancement in autonomous driving, completely eliminating human controls.
“This will be a purpose-built vehicle, marking the first mass-produced vehicle unrestrained by traditional design and driver requirements,” remarked GM president Donald Amman.
Amman did not specify the timeline for when Cruise Automation’s self-driving vehicles would start transporting the public, whether in the Bolt EV or the forthcoming model. The rollout will occur only once it is confirmed that they meet safety criteria, he noted.
Recently, the Japanese tech-centered investment bank Softbank invested $2.25 billion in Cruise, while Honda secured a $750 million equity share. Collectively, these investments from Honda and Softbank elevate Cruise’s valuation to $14.6 billion.
“Autonomous vehicles are more than just a fantasy based in Silicon Valley,” stated Zo Rahim, Research Manager at automotive media firm Cox Automotive. “Established car manufacturers are set to steer the evolution and expansion of the future of mass transportation.”
GM’s shares saw a 2% increase on Wednesday.
Honda and GM have been collaborating on electric car battery innovations and hydrogen fuel cell technology, which generates electricity from hydrogen gas. Their new partnership with Cruise Automation has emerged from their prior cooperation.
GM (GM) claims that with the self-driving Bolt EV, it is the sole manufacturer assembling autonomous vehicles on a production line. However, the companies refrained from disclosing details on where or when this new vehicle will be produced.
