Published on October 3rd, 2018 | by Daniel Sherman Fernandez0
Honda & General Motors to Build New Autonomous Vehicle
Honda and GM are working together to transform mobility through the large-scale deployment of autonomous vehicle technology.
Honda will work jointly with Cruise (Cruise develops self-driving car technology and was acquired in May 2016, operates as an independent subsidiary of General Motors) and General Motors to fund and develop a purpose-built autonomous vehicle for Cruise that can serve a wide variety of use cases and be manufactured at high volume for global deployment. In addition, Cruise, General Motors and Honda will explore global opportunities for commercial deployment of the Cruise network.
Honda will contribute approximately USD2 billion over 12 years to these initiatives, which, together with a USD750 million equity investment in Cruise, brings its total commitment to the project to USD2.75 billion.
In addition to the recently announced SoftBank investments, this transaction brings the post-money valuation of Cruise to USD14.6 billion.
“This is the logical next step in General Motors and Honda’s relationship, given our joint work on electric vehicles, and our close integration with Cruise,” said General Motors Chairman and CEO Mary Barra. “Together, we can provide Cruise with the world’s best design, engineering and manufacturing expertise, and global reach to establish them as the leader in autonomous vehicle technology – while they move to deploy self-driving vehicles at scale.”
“Honda chose to collaborate with Cruise and General Motors based on their leadership in autonomous and electric vehicle technology and our shared vision of a zero-emissions and zero-collision world,” said Honda Executive Vice President and Representative Director COO Seiji Kuraishi. “We will complement their strengths through our expertise in space efficiency and design to develop the most desirable and effective shared autonomous vehicle.”
“With the backing of General Motors, SoftBank and now Honda, Cruise is deeply resourced to accomplish our mission to safely deploy autonomous technology across the globe,” said Cruise CEO Kyle Vogt. “The Honda partnership paves the way for massive scale by bringing a beautiful, efficient, and purpose-built vehicle to our network of shared autonomous vehicles.”