By Dhirendra Tripathi
Investing.com -- General Motors (NYSE:GM) stock traded 1.5% higher in premarket Tuesday after the company forged an alliance with Honda Motor (NYSE:HMC) to make “millions of electric vehicles” in the world’s most popular segments.
According to a GM release, the venture will particularly target the compact crossover segment, the largest in the world with annual volumes of more than 13 million vehicles.
“Our plans include a new all-electric product for North America positioned at a price point lower than the upcoming Chevrolet Equinox EV, building on the 2 million units of EV capacity the company plans to install by the end of 2025,” said Doug Parks, GM's Executive Vice President, Global Product Development, Purchasing and Supply Chain, in a press release.
The new EVs are expected to go on sale in 2027, starting with North America.
The companies will also work toward standardizing equipment and processes to achieve greater affordability, GM said.
“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 Mary Barra, GM Chair and CEO.
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. On the other hand, Honda is making progress on its all-solid-state battery technology which the company sees as the core element of future EVs.