General Motors has announced it and its Cruise subsidiary are joining forces with Honda Motor Company with regards to the development of autonomous vehicles. The partnership is being launched with a $750 million investment into Cruise by Honda.
Honda will work jointly with Cruise 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. The two organizations also plan further collaboration regarding expanding Cruise’s global reach going forward.
In total, Honda will contribute approximately $2 billion over 12 years to these initiatives, which, together with a $750 million equity investment in Cruise, brings its total commitment to the project to $2.75 billion.
GM says Honda’s investment and SoftBank’s recent equity investment, Cruise is now valued at about $14.6 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.”
GM says Cruise is now “deeply resourced” and positioned to build autonomous vehicles at large scale for the global market.