SELF-DRIVING CARS: Honda To Invest $2.7 Billion In General Motors
Automobile manufacturers are coming together to push for the next frontiers – self-driving cars.
The latest to enter a partnership in this pursuit is Honda Motor and General Motors.
Honda is to invest $2.75 billion and take a 5.7% stake in General Motors’ Cruise self-driving vehicle unit.
The investment is spurred by the desire to jointly develop autonomous vehicles for deployment in ride services fleets around the world.
This comes months after Japan’s SoftBank Group made a multi-billion-dollar commitment to Cruise.
That puts Cruise in a league with Alphabet Inc’s Waymo unit in terms of resources and aggressive plans to launch commercial services.
Alphabet is the parent company of search giant, Google.
Honda has also been in talks with Waymo about a possible collaboration for two years. While no deal has been announced, an agreement between the two to discuss integrating Waymo’s self-driving technology into Honda vehicles still stands, a spokeswoman for the automaker told Reuters.
Honda, which has lagged many of its rivals in developing self-driving vehicles, is paying $750 million upfront for the equity stake in GM’s Cruise and will contribute another $2 billion over 12 years in development work and fees, the companies said on Wednesday.
The deal calls for Honda to provide engineering expertise and extends cooperation between the pair in a technology that has enormous costs and risk but no market-ready products.
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