In an electrifying fusion of innovation, Honda and General Motors are embarking on a groundbreaking venture to develop a new echelon of fully autonomous vehicles. Honda is set to inject a staggering $2 billion into GM’s autonomous subsidiary, Cruise, over the span of a dozen years—a bold commitment that signals their serious intentions in the realm of self-driving technology.
GM, in collaboration with Cruise, has been tirelessly engineering self-driving iterations of the Chevrolet Bolt EV, with ambitious plans to unleash a fleet for public use as soon as next year. Yet, this is just the beginning. With Honda’s financial acumen and engineering prowess fueling their efforts, Cruise is poised to birth a brand-new vehicle, one that eschews traditional design principles and is utterly devoid of the familiar steering wheel and driver controls. This, the companies assert, represents a pivotal leap forward in autonomous driving.
“This vehicular creation is purpose-built—it will stand as the inaugural model produced at scale, unshackled from the conventional constraints of automobile design,” declared GM’s president, Donald Amman, with palpable enthusiasm.
However, the exact timeline for when Cruise’s autonomous wonders will begin ferrying eager passengers remains shrouded in mystery. Amman refrained from specifying when the general public might hitch a ride, whether within the Bolt EV or this groundbreaking new model, emphasizing that safety considerations reign supreme.
In the backdrop of this ambitious plan, SoftBank—a Japanese investment giant with a penchant for tech ventures—recently funneled $2.25 billion into Cruise, while Honda carved out a notable $750 million equity stake. These investments have collectively elevated Cruise’s valuation to an impressive $14.6 billion.
As Zo Rahim, Research Manager at the automotive media powerhouse Cox Automotive, aptly remarked, “Autonomous vehicles are not merely a whimsical Silicon Valley fantasy. Established auto manufacturers are uniquely positioned to steer the trajectory and evolution of mass mobility’s future.”
On a related note, GM’s stock saw a slight uptick of 2% on Wednesday, reflecting investor optimism amid these transformative developments. Moreover, Honda and GM have a rich history of collaboration, particularly in the fields of electric car battery technology and hydrogen fuel cells, which harness energy from hydrogen gas. This new alliance with Cruise Automation is a natural progression stemming from their previous joint endeavors.
As it stands, GM proudly claims its title as the sole company manufacturing autonomous vehicles on a production line, though specifics regarding the production locale and timelines for the new vehicle remain closely guarded secrets. The automotive landscape is on the brink of a revolution—one that may well reshape the very fabric of how we perceive transportation.
