Honda acquires $2.75bn stake in General Motors Cruise autonomous vehicle unit

By Sean Galea-Pace
The automotive giants, Honda, has announced it will invest $2.75bn and hold a 5.7% stake in General Motors’ (GM) Cruise autonomous vehicle unit, Reute...

The automotive giants, Honda, has announced it will invest $2.75bn and hold a 5.7% stake in General Motors’ (GM) Cruise autonomous vehicle unit, Reuters reports.

The company has agreed to pay $750mn in advance for the minority stake in Cruise and will also contribute another $2bn over the next 12 years.

As part of the deal, Honda, GM and Cruise will develop autonomous vehicles in a joint venture with the aim of deploying ride services fleets around the world.

In a media briefing on Wednesday (3rd October), GM President Dan Ammann announced that 2019 remains the target for GM Cruise to unveil an autonomous ride services fleet.

See more:

“The longstanding relationship we have with Honda will allow us to move very quickly in ramping up our efforts.”

Honda executive Seiji Kuraishi commented: “This investment is based on a shared vision and GM’s and Cruise’s superior technologies in this area.”

In order to ensure companies don’t fall behind in developing new technology such as self-driving vehicles, other automakers are creating similar alliances.

It has been revealed that Ford and BMW expect to launch autonomous vehicles by 2021.

Following the news, GM’s shares rose 3.5% in opening trade.

Share

Featured Articles

What to see and do at GSMA MWC Shanghai 2024

At the 2024 GSMA MWC in Shanghai, guests will learn more about the future of 5G and IoT, as well as the role of mobile connectivity in manufacturing

EV Recycling Driven By Tata Steel, Nucor and Dowa Holdings

Market projected growth for EV recycling set to go from US$551bn in 2024 to US$768bn by 2029 with Tata Steel and Nucor embracing ferrous metal recycling

Brooke Weddle: Manufacturing Needs A Rebrand

Brooke Weddle, senior partner at Mckinsey, sat down with Manufacturing Digital to discuss methods to address manufacturing's global hiring crisis

Immensa and Intaj Suhar partner to boost Omani manufacturing

Procurement & Supply Chain

Bain & Company Report: OEMs and Digital Transformation

Smart Manufacturing

The Factory of the Future: Manufacturers' Biggest Challenges

Smart Manufacturing