The new electronic cars, which will use GM’s batteries will be manufactured at GM plants in North America. The exteriors and interiors of the cars will be designed by Honda. Honda expects to begin selling the cars in the U.S. and Canada in 2024.
"This expanded partnership will unlock economies of scale to accelerate our electrification roadmap and advance our industry-leading efforts to reduce greenhouse gas emissions," said Rick Schostek, executive vice president of American Honda Motor. “We are in discussions with one another regarding the possibility of further extending our partnership.”
Wall Street analysts take a bullish stance on General Motors even as the company’s stock shaved off half of its value in the past three months. General Motors’ Strong Buy consensus rating is supported by 10 Buys and 1 Hold. The $38.40 average price target means investors could be coming out with a 113% gain in the next 12 months, should it be met. (See General Motors’ stock analysis on TipRanks).
Under the terms of the joint agreement, Honda will incorporate GM's OnStar safety and security telematic services into the two electric vehicles. In addition, Honda will also use GM's hands-free advanced driver-assist technology for the new venture.
The two car manufacturers have already collaborated on the Cruise Origin, an electric, self-driving and shared vehicle, launched in San Francisco earlier this year.
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