Honda and GM team up for a North American Strategic Alliance
In an interesting turn of events, GM has products that Honda is interested in, but what does that mean for us?
Honda and GM have had a history of co-developing projects. From the Saturn Vue Redline to advanced battery technologies, the two companies seem to be chummy when it comes to their combined success. This particular partnership will create a new series of electric vehicles. What is particularly interesting about this deal is that Honda is interested in GM's products, not the other way around. See, GM's Ultium platform is likely to dominate the EV segments that it will compete in once it gets to market. At least within the US, Honda produces the EV version of the Clarity, and that's it. They have many hybrid models, but in terms of pure EVs, they are few and far between. This is where GM comes into play.
Honda is also currently up the creek with no paddles, considering the automaker announced that the Clarity EV was discontinued for the 2020 model year. Based on this deal, Honda intends to use GM's Ultium platform to underpin two pure EVs, with styling and performance to match Honda's current ethos. This is particularly interesting, especially considering Honda doesn't have an EV on sale in the US at the moment. These models aren't expected to be on sale until 2024, it begs the question, what are these EVs going to be?
Logic would say that one of these vehicles would be some of sort mid-size crossover, since that is one of the hottest segments in the SUV market at the moment. One of these vehicles could be the Cruise Origin, a project that is currently in development as a self-driving taxi, and is currently being developed by Honda and GM.
Honda plans on using OnStar and GM's "hands-free advanced driver assist technology" would could even mean that a variant of Super Cruise could find itself in these new vehicles.
More importantly than that, these new EVs will be built in plants within North America, which is good news considering the current state of North American manufacturing, as more automakers start to import vehicles, which are falling victim to Trump's tariffs. This will hopefully position Honda, and ultimately GM, to produce more EVs that will be not only competitive, but affordable too.
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