An Investment by Honda in a GM Venture

An Investment by Honda in a GM Venture

GM has developed the autonomous vehicle subsidiary called Cruise Automation which is a proven mobility solution for the masses.

Honda appears to want a piece of this pie and has announced an investment of $2.75 billion into Cruise to help with the future of this program.  This will make it possible for Cruise to be even more aggressive in the expansion of the programs in place and to add more automation for the development of mobility solutions that can make it easier for many to get where they need to go.

The Investment Explained

So far, Honda has made a $750 million equity investment in Cruise and has committed to another $2 billion over the next twelve years to aid in the development of purpose-built autonomous vehicles. These vehicles will be built for global deployment, and with the production capabilities of GM and Honda, will be manufactured at a high volume. The global reach of Honda will aid GM in developing and exploring more opportunities for commercial use, especially in the larger cities of the world where mobility is needed the most.

Not the First Partnership for Honda and GM

Honda and GM have partnered in the past with joint work on electric vehicles. Cruise can be proved to be the best in design, engineering, and manufacturing with the collaboration of these two automotive giants working together to develop every aspect of what the program will offer. The goal is to develop self-driving vehicles to a scale that will make them useful to more of the world for the mobility needed. This new investment in Cruise follows the announcement that Honda would buy batteries from GM for their EV models that will be offered in future Honda vehicles.

A Goal We Can All Admire from GM

Currently, the Cruise Automation program is expected to be offered to give us more mobility options than in the past, but the future goal is something that may take over the automotive marketplace globally. This goal is quoted to be a “zero-collision and zero-emissions world in which we won’t have to do any of the driving, but will have vehicles that we can trust to get us where we need to go without the worry that a crash could take place. More accidents are caused by human error than anything else, and Cruise Automation could take that out of the equation.

The Honda Improvement

Not only will Cruise Automation benefit from the investment by Honda and the current support by GM, but the addition of the Honda team will significantly increase the path to autonomous vehicles becoming a reality. The two companies will work together to develop an innovative, space-efficient, autonomous vehicle that offers an exceptional experience while minimizing the congestion that we
currently see on crowded streets in most of the major cities of the world. Cruise might be the first to truly produce a mass-market fully autonomous vehicle that will be approved for use on every road.

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