Honda Joins with Cruise and GM to Build New Autonomous Vehicle

Cruise and General Motors have announced they have joined forces with Honda to fund and develop a purpose-built autonomous vehicle that can serve a wide variety of use cases and be manufactured at high volume for global deployment. In addition, Cruise, General Motors and Honda will explore global opportunities for commercial deployment of the Cruise network.

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.

In addition to the recently announced SoftBank investments, this transaction brings the valuation of Cruise to $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 Mary Barra, General Motors Chairman and CEO.

“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.”

Source: Motor Trader E-Magazine (November 2018)

12 Nov 2018