In an effort to challenge Tesla in sales, General Motors and Honda Motor Co have announced that they will create a series of lower-priced electric vehicles based on a new shared platform, potentially producing millions of cars starting in 2027.

The news builds on GM’s intentions to start 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 firms have not said how much money they’ll put into the new partnership.

At an Axios event on Tuesday, GM CEO Mary Barra stated that the pricing will be lower than the $30,000 price tag intended for the electric Chevrolet Equinox SUV. She described the new lower-cost automobiles as “affordable EVs.”

She stated that the new vehicle is part of GM’s strategy to outsell Tesla in terms of electric vehicle sales.

“We have a very important goal… that by mid-decade, by 2025, we’ll sell more EVs in the U.S. than anyone else and to do that, you need to have a portfolio of vehicles,” Barra said, noting GM plans a wide range of small to large EVs. “We definitely can scale and can do it quickly.”

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

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 manufacturer owns a stake in General Motors’ Cruise self-driving car unit, and the two businesses are collaborating on the Cruise Origin autonomous electric vehicle. In Brownstown, Michigan, the companies have a joint venture to study and produce hydrogen fuel-cell devices.

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

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 DailyAdvent.com)