American auto giant General Motors and Japanese motor company Honda Motor Co announced that they will collaborate on a series of electric vehicles that would be manufactured on a new shared platform. The two companies target to mass produce the electric vehicles beginning in 2027.

This latest announcement from GM builds on its intentions to begin producing two electric SUVs for Honda in 2024, the Honda Prologue and an Acura vehicle. 

The new agreement is for “cheap” electric vehicles, such as tiny crossovers, produced with GM’s Ultium battery technology, according to the automakers. According to the firms, the compact crossover segment is the world’s most popular auto segment, with yearly sales exceeding 13 million vehicles.

The corporations haven’t said how much money they’ll put into the new partnership.

On a conference call, GM executive vice president Ken Morris stated that the pricing will be less than the $30,000 price tag intended for the electric Chevrolet Equinox SUV.

In an effort to reduce costs, the businesses said they will also examine future battery technology collaboration for electric vehicles.

“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America and China,” GM Chief Executive Mary Barra said in a statement.

The agreement is part of GM’s goal to be carbon neutral in its global products and operations by 2040, and to eliminate tailpipe emissions from light-duty vehicles in the United States by 2035.

Honda has stated that it plans to achieve global carbon neutrality by 2050.

The Japanese automaker has a share in GM’s Cruise self-driving car division, and the two companies are working together to build the Cruise Origin autonomous electric vehicle. The firms also operate a joint venture in Brownstown, Michigan, to research and manufacture hydrogen fuel-cell devices.

“Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles,” Honda CEO Toshihiro Mibe said.

(Adapted from CarAndBike.com)