There’s a new bit of self-driving cars news coming from GM (NYSE:GM) and Honda (NYSE:HMC).
The new self-driving cars news is that GM and Honda are planning to team up to create autonomous vehicles. This will have both companies funding and researching development of self-driving cars.
Cruise is GM’s research division for autonomous vehicles. As such, it will be working with Honda on the development of the vehicles. This self-driving cars news also includes Honda dedicating $2.75 billion toward the development of such vehicles.
Honda won’t be giving up all of that money at once to GM. Instead, it will be doling out $2 billion of it into development and research over the next 12 years. The remaining $750 million will come in the form of an equity investment into GM’s Cruise.
“This is the logical next step in General Motors and Honda’s relationship, given our joint work on electric vehicles, and our close integration with Cruise,” GM Chairman and CEO Mary Barra said in a statement. “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 autonomous vehicle technology – while they move to deploy self-driving vehicles at scale.”
This isn’t the first time that GM’s Cruise has gotten funding to continue its research and development of autonomous vehicles. A previous self-driving cars news announcement from the company confirmed that SoftBank (OTCMKTS:SFTBY) invested $2.25 billion into the division.
GM stock was up 2% and HMC stock was down 3% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
