Honda has decided to purchase a stake in GM cruise as part of a plan for the Japanese and American companies to manufacture autonomous vehicles. According to the agreement, Honda will invest $2.75 billion over the period of the next 12 years. Honda pays the first installment immediately which is of $750 million into Cruise and increase the company’s value up to $14.6 billion.
The goal of both the companies is to manufacture autonomous vehicles on a mass level which can be taken up easily in multiple cases. At the start of this year, Softbank vision fund invested $2.25 billion in the GM cruise unit.
Honda Executive Vice President and Representative Director COO Seiji Kuraishi said in a release. “Honda chose to collaborate with Cruise and General Motors based on their leadership in autonomous and electric vehicle technology and our shared vision of a zero-emissions and the zero-collision world, We will complement their strengths through our expertise in space efficiency and design to develop the most desirable and effective shared autonomous vehicle.”
The GM president Dan Ammann describes the Autonomous vehicle as the enhanced step in the future of transportation and it will be produced at a higher rate for global deployment. They did not explain how this next generation vehicle will look like, but the CEO in an interview with Techcrunch said words like “innovative,” “space-efficient” “and multi-purpose.”
“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,” General Motors Chairman and CEO Mary Barra.
Honda and GM cruise also aims to develop a large network intended to produce worldwide, for now, the vehicle is planned to build at GM plant, with no release date has been officially announced yet. Most analysts believe that autonomous cars begin to widespread in 2021 or 2022.