GM and Honda team up to develop two new all-electric vehicles

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General Motors and Honda Motor have agreed to jointly develop two new all-electric vehicles for the Japanese automaker, the companies announced on Thursday.

The vehicles are expected to go on sale in the 2024 model year, the companies said. They’ll be powered by GM’s proprietary “Ultium” battery technology, but their designs will be exclusive to Honda and the vehicle platform “will be designed to support the driving character of Honda.”

Honda will also offer GM’s hands-free driving assistance technology, known as Super Cruise, and Detroit automaker’s safety and OnStar safety services in the two fully electric vehicles.

GM shares rose slightly during extended trading hours after closing Thursday at $ 18.19, down 5.6%.

Neither company has released the financial terms of the deal, further deepening ties between the two companies regarding all-electric and autonomous vehicles. Previously, Honda has invested $ 750 million in Cruise, the majority of GM’s autonomous vehicle unit; development of the Cruise Origin autonomous vehicle; and work on battery modules and fuel cell vehicles.

Doug Parks, GM’s executive vice president for global product development, purchasing and supply chain, said the agreement is “another step on our path to an all-electric future and the provision of a profitable electric vehicle business through increased scale and capacity utilization. ”

“We have been working closely with Honda for a long time and this new collaboration builds on our relationships and similar goals,” he said in a statement.

GM previously stated that vehicles with its Ultium batteries will be capable of 400 miles or more, charge more than 100 miles in 10 minutes and accelerate from zero to 60 miles per hour in as little as three seconds.

“This collaboration will bring the strength of both companies together, while economies of scale and manufacturing efficiency will ultimately bring greater value to customers,” said Rick Schostek, executive vice president of American Honda Motor , in a press release. “This expanded partnership will provide economies of scale to accelerate our electrification roadmap and advance our cutting-edge efforts to reduce greenhouse gas emissions. “

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