General Motors and Honda have entered into a partnership to build a new series of electric vehicles. That alone is an interesting development, but what’s even more interesting for consumers is that the price for those EVs is expected to be under $30,000 – almost half the price of what Kelley Blue Book says EVs were selling for late last year.
The GM-Honda EV series is expected to go on sale in 2027 starting in North America. Compact crossover vehicles will be manufactured under the partnership -- a type of vehicle that both automakers are familiar with; GM has the Chevy Blazer, Equinox, and Tahoe, and Honda has the CR-V, HR-V, and Pilot. The compact crossover segment is also the largest in the world, with an annual volume of more than 13 million vehicles. That affords the companies a better chance of addressing the automotive market’s sweet spot.
Affordability will be a key issue if automakers want to turn the corner on EVs. The market for these vehicles continues to grow, but buyers are typically older and make more than $100,000 annually – a fact not lost on GM or Honda. In a call with reporters, GM's Ken Morris said the two companies expect their co-developed EVs to be priced below $30,000.
“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America, and China,” said GM chair and CEO Mary Barra.
“Honda is committed to reaching our goal of carbon neutrality on a global basis by 2050, which requires driving down the cost of electric vehicles to make EV ownership possible for the greatest number of customers,” added Honda president and CEO Toshihiro Mibe.
Advancements with EV batteries
The companies said one of the biggest benefits that brought them together is their desire to find a way to build batteries that are more affordable and “next generation.” For that element, the focus will be based on a new global architecture using next-generation Ultium battery technology.
General Motors recently called its Ultium Charge 360 a “holistic charging experience.” It claims that its process can remove any headaches that a car owner might encounter if they decide to buy an electric vehicle.
Not to be left out, Honda says it’s also making progress with batteries. The company says its all-solid-state battery technology is a candidate to become the core element of future EVs and that it has already established a demonstration line in Japan for all-solid-state batteries and is making further progress toward mass-production.