General Motors (NYSE:GM) and Honda (NYSE:HMC) are partnering to create a series of affordable electric vehicles. The best part for consumers? The companies plan to keep the vehicles under $30,000. The bad part? They likely won’t hit dealerships until 2027.
GM and Honda are already working together to launch two EVs in 2024: the Honda Prologue and an Acura crossover.
While EVs have been gaining momentum over the years, there is a need for more affordable options. Both companies have been hard at work to develop next-generation, solid-state batteries that will provide a cheaper option than lithium-ion batteries used in EVs.
Further, this deal will help both automakers reach their goals of carbon neutrality in their global products and operations. GM plans to reach that goal by 2040, while Honda hopes to do so by 2050.
Separately, GM also has its own EV plans. The automaker will invest $35 billion in EV and AV development between 2020 and 2025. By 2024, GM aims to deliver 400,000 EVs in North America. By 2025, the company plans to have the capacity to produce more than a million EV units in North America — including 600,000 full-size trucks.
Recently, the automaker unveiled its new and highly anticipated EV Silverado pickup truck. The company plans to assemble the vehicle in Detroit, MI. and be capable of a 400-mile driving range. Its starting price will be $39,900 and could go up to over $105,000 depending the vehicle’s options. The electric Silverado is planned to debut in spring 2023 as a 2024 model year.
While there are multiple EV trucks in the pipeline — including from Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) — the Silverado’s head-to-head competition is expected to come from Ford’s (NYSE:F) F-Series Lightning.
On Monday, GM also announced it’s making a huge move into Canada. It made a $2 billion dollar investment in two plants to develop the first all-electric assembly plant in Ingersoll, Ontario. The Canadian government will also be investing $259 million toward the projects.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.