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General Motors and Honda will jointly develop two electric vehicles for Honda's product line that are slated for manufacture at GM's North American plants.
Why it matters: No company can go it alone when it comes to funding advanced technologies like electrification.
- While Honda is known for efficient gasoline-powered engines, it needs help with battery-electric vehicles.
- GM, for its part, gets added scale for its new Ultium battery platform, which should help drive down EV prices.
Details: Sales of the new vehicles are slated to begin in 2024.
- The companies already work together on many fronts, including hydrogen fuel cells.
- Honda is also an investor in GM’s self-driving unit, Cruise.
The big picture: It's among a growing number of major corporate partnerships over EVs, such as Ford and VW's alliance, Toyota and Panasonic's joint battery development, Ford's work with the startup Rivian, and more.
But, but, but: GM and Honda are on different sides of the debate over auto emissions policy.
- Honda — along with Ford, VW, BMW and Volvo — are part of a preliminary deal with California to meet CO2 standards that are stricter than Trump administration rules.
- GM is among the automakers on the administration's side in litigation to block California (and states that follow its lead) from imposing separate standards.