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GM and Honda Will Create a New Line of Cheap EVs!
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The two manufacturers announced Tuesday that they will create a new structure based on GM’s Ultium EV battery that will be used largely for compact crossover SUVs. The firms want to establish a manufacturing capability capable of producing millions of automobiles.
The deal considerably increases the automakers’ partnership, expanding connections as they seek to share development expenses and higher sales. Since 2013, GM and Honda have been collaborating on hydrogen fuel cells, and they have recently stated their cooperation on EV batteries, gas-powered vehicles, and self-driving technologies.
Honda Motor Company was the very first Japanese carmaker to openly announce last year that it would no longer sell fuel vehicles, with the goal of eliminating them entirely by 2040. However, GM intends to produce and market 30 electric vehicles by 2025 and to phase out diesel and petrol engines 10 years later.
GM and Honda have been working together to create engines and crossover SUVs in order to minimize costs and redirect funding toward the development of EVs. The firms stated that they intend to collaborate in sectors such as components and materials supply, research activities, and connected-car services by 2020.
The 2020 agreement with GM was a significant step forward for the Japanese manufacturer, which had hitherto avoided such strategic alliances. Adding to the trend, Honda revealed last month its intentions to collaborate with tech behemoth Sony Group Corp. to create battery-powered vehicles.