HMC

General Motors and Honda Will Jointly Develop New Electric Honda Vehicles

General Motors (NYSE: GM) and Honda (NYSE: HMC) said Thursday that they will work together to develop two new electric vehicles for Honda using GM's vehicle architecture and proprietary batteries.

The companies announced that these two new electric Hondas will be built at GM factories in North America. Both will go on sale in the U.S. and Canada in the 2024 model year.

The new Hondas will be built on a new, highly flexible electric vehicle architecture developed by GM to underpin a wide range of future electric models. Like those upcoming GM electric vehicles, the two new Hondas will be powered by GM's proprietary low-cost Ultium battery packs. 

An electric-vehicle chassis and battery pack, displayed at a GM event in March 2020.

The new electric Hondas will use GM's electric-vehicle architecture and Ultium batteries. Image source: General Motors.

The new electric Hondas will also incorporate GM's OnStar connected-vehicle services, the companies said. 

It's not clear where the new Hondas will be built. GM said in March that it will build its own upcoming electric vehicles at its Detroit-Hamtramck factory, which is currently being revamped for that purpose. The battery packs, developed with LG Chem, will be made in a new factory in Ohio.  

GM and Honda have been working together for several years on a number of projects related to zero-emissions vehicles and future technologies. Their work has included a joint venture to develop hydrogen fuel cells for electric vehicles, as well as a self-driving taxi in collaboration with GM's self-driving subsidiary, Cruise Automation.

The two companies may soon announce additional joint efforts. Rick Schostek, a senior executive in Honda's American unit, said that Honda and GM are discussing the possibility of extending their partnership further. 

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John Rosevear owns shares of General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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