Earlier today, Honda (NYSE: HMC) announced in a press release that it has formed a partnership with Cruise and General Motors (NYSE: GM) in order to advance the development of autonomous vehicle technology. Honda and GM will work together to fund a driverless car for autonomous vehicle company, Cruise, which had been acquired by GM in 2016. Honda has made an initial investment of USD 750 Million in this venture and will continue to fund the initiative with USD 2 Billion over the course of 12 years.
This is not the first collaboration effort made the two Companies. In June, both car companies had formed a partnership to develop electric vehicles which are expected to be available for purchase in 2020. Commenting on the collaboration, General Motors Chairman and CEO, Mary Barra, said, “Together, we can provide Cruise with the world’s best design, engineering and manufacturing expertise, and global reach to establish them as the leader in the autonomous vehicle technology – while they move to deploy self-driving vehicles at scale.”
Honda had shared the vision of a world with zero-emissions and zero-collisions with GM which made it an easy choice to team up once again. “Sharing our technology with a partner beyond our immediate GM family is the right move for our customers and their communities,” said CEO of Cruise, Kyle Vogt. “It’s also the right move for Honda and accelerates our mission to bring self driving cars to as many people as possible.” With this newfound partnership, we can expect more developments in the autonomous car industry and hopefully a working model in the near future.