"Lowering Electric Vehicle Prices" GM and Honda Agree to Collaborate... Focus on Batteries

[Image source=Reuters Yonhap News]

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] General Motors (GM) and Honda Motor Company have decided to jointly develop affordable electric vehicles and launch them in the global market.

According to Bloomberg and other sources on the 5th (local time), GM and Honda announced that they will collaborate to produce several electric vehicle models, including compact sport utility vehicles (SUVs) for North America, South America, and China, by 2027. The first production model is expected to be released in the United States in 2027, priced under $30,000.

Mary Barra, CEO of GM, stated, "GM and Honda will share the best technology, design, and manufacturing strategies to provide affordable and desirable electric vehicles worldwide, including key markets in North America, South America, and China."

This collaboration between GM and Honda aims to increase accessibility to electric vehicles. In the United States, the average price of electric vehicles is about $60,000, significantly exceeding the average price of $45,000 for conventional internal combustion engine vehicles. The Wall Street Journal (WSJ) explained that large battery packs supplying power account for more than 30% of the electric vehicle price.

The two companies plan to focus on reducing battery-related costs, which constitute the largest portion of electric vehicle expenses. They have been cooperating on hydrogen fuel cells since 2013 and recently announced collaboration on electric vehicle batteries and autonomous driving technologies.

This content was produced with the assistance of AI translation services.