General Motors and Honda Expand EV Tech Partnership

The companies will partner on affordable sub-$30,000 electric crossover SUVs for 2027.

Dan Carney, Senior Editor

April 5, 2022

4 Min Read
Honda SUV e Concept.jpeg
Honda SUV e:conceptImage courtesy of Honda

General Motors and Honda are getting the band back together, so to speak, as they are reprising a powertrain partnership from the early aughts, but this time using electric power.

The two companies are cooperating on a series of affordable electric vehicles using a new global architecture with the next generation of GM’s signature Ultium battery technology

Their target is “global production of millions of EVs starting in 2027,” according to the companies’ announcement. This will specifically include compact crossover SUVs, that would slot into the market segment below the mid-sized Chevrolet Equinox EV that is planned for 2023, GM said. That segment has particular appeal because it is currently the world’s largest vehicle category, with annual sales of more than 13 million vehicles globally.

“Honda and GM’s announcement today about a new crop of electric crossovers couldn’t have come at a more ideal time,” said Robby DeGraff, industry analyst for AutoPacific.

“With gas prices remaining high and an avalanche of electric vehicles on the way, affordability is a big barrier when it comes to encouraging more consumers towards EV ownership,” he stated. “Thankfully we’ve been seeing automakers introduce far more affordable EVs with great realistic range below the almost-$50,000 average transactional price of a new vehicle sold today.” 

Related:GM Ultium EV Motors Reduce Rare Earth Metals for 2022 Hummer SUV

Indeed, the partners are promising to undercut the Chevrolet Equinox EV in both size and price, and that vehicle is slated to start at $30,000, providing a benchmark for the new vehicles’ affordability. “Chevrolet and Honda in a few years' time plan to start selling compact crossovers that will bring consumers into EV ownership at a cost below $30,000,” said DeGraff. “This really is a huge deal for both automakers as it's an easy profitable opportunity to tap into a very popular segment (compact XSUV) and save development costs by collaborating together.”

The companies headed down the path to this partnership with a limited agreement in 2020 for GM to provide its Ultium batteries for the 2024 Honda Prologue electric SUV and an as-yet-unnamed Acura variant, reported Rick Schostek, Executive Vice President, Corporate Services for American Honda Motor Co.The success of the members of our design and development teams working with their GM counterparts in Warren, Michigan, was a key factor in the decision to develop a new series of affordable electric vehicles together,” he said.

Honda will also continue working on its own in-house EV development, Schostek added. “At the same time, as we announced last year, Honda is already developing electric vehicles using our own Honda e:Architecture and they are in the pipeline,” he said.

Related:Cadillac Lyriq Reveals New Details of GM’s Ultium Battery Technology

2024-Chevrolet-Equinox-EV-002.jpg

Concept image of 2024 Chevrolet Equinox EV.

The new partnership aims to exploit the two companies’ technology, design, and sourcing strategies while aiming to standardize equipment and processes to achieve world-class quality, higher throughput, and greater affordability, the companies said.

GM is working to accelerate new technologies like lithium-metal, silicon, and solid-state batteries, along with production methods that can quickly be used to improve and update battery cell manufacturing processes.  Meanwhile, Honda says it is making progress on its all-solid-state battery technology for future EVs. The company has even built a demonstration production line for all-solid-state batteries which Honda says is making further progress toward mass production.

"The progress we have made with GM since we announced the EV battery development collaboration in 2018, followed by co-development of electric vehicles including the Honda Prologue, has demonstrated the win-win relationship that can create new value for our customers,” said Shinji Aoyama, Honda senior managing executive officer. “This new series of affordable EVs will build on this relationship by leveraging our strength in the development and production of high quality, compact class vehicles.”

GM and Honda first partnered on the Saturn Vue Redline of 2002-2007. The Vue was Saturn’s first crossover SUV, and GM signed Honda to provide a smooth, powerful Honda 3.5-liter V6 because it delivered the experience that Saturn’s target customers expected.

2006 Saturn Vue Redline.jpg

2006 Saturn Vue Redline with 3.5-liter Honda V6 power.

In 2013, the two companies partnered to work on next-generation fuel cell systems and hydrogen storage technologies.  Then in 2018, Honda signed on to participate in GM’s Ultium EV battery module development efforts. By 2020, the companies announced their intent to codevelop two EVs, including the Honda Prologue, to be launched in early 2024, soon followed by Acura’s first EV SUV.

Differences in goals and corporate cultures may have held back earlier joint efforts from blossoming, so it will be interesting to see whether the partners are ready this time to get serious about their relationship.

About the Author

Dan Carney

Senior Editor, Design News

Dan’s coverage of the auto industry over three decades has taken him to the racetracks, automotive engineering centers, vehicle simulators, wind tunnels, and crash-test labs of the world.

A member of the North American Car, Truck, and Utility of the Year jury, Dan also contributes car reviews to Popular Science magazine, serves on the International Engine of the Year jury, and has judged the collegiate Formula SAE competition.

Dan is a winner of the International Motor Press Association's Ken Purdy Award for automotive writing, as well as the National Motorsports Press Association's award for magazine writing and the Washington Automotive Press Association's Golden Quill award.

He has held a Sports Car Club of America racing license since 1991, is an SCCA National race winner, two-time SCCA Runoffs competitor in Formula F, and an Old Dominion Region Driver of the Year award winner. Co-drove a Ford Focus 1.0-liter EcoBoost to 16 Federation Internationale de l’Automobile-accredited world speed records over distances from just under 1km to over 4,104km at the CERAM test circuit in Mortefontaine, France.

He was also a longtime contributor to the Society of Automotive Engineers' Automotive Engineering International magazine.

He specializes in analyzing technical developments, particularly in the areas of motorsports, efficiency, and safety.

He has been published in The New York Times, NBC News, Motor Trend, Popular Mechanics, The Washington Post, Hagerty, AutoTrader.com, Maxim, RaceCar Engineering, AutoWeek, Virginia Living, and others.

Dan has authored books on the Honda S2000 and Dodge Viper sports cars and contributed automotive content to the consumer finance book, Fight For Your Money.

He is a member and past president of the Washington Automotive Press Association and is a member of the Society of Automotive Engineers

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