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News / 10-05-18

Honda partners with Cruise, General Motors to build autonomous electric vehicles

Cruise now valued at $14.6 billion after Honda investment


By Paolo de Borja

 

A shared goal among automobile manufacturers today is the development of electric and autonomous vehicles. It is increasingly becoming more apparent that the fate of mobility rests on a more efficient and greener course.

Cruise and General Motors announced that they have partnered with Honda in the large-scale deployment of autonomous vehicle technology.

“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,” said General Motors Chairman and CEO Mary Barra.

“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,” she added.

A total of $2.75 billion is committed to this project. Roughly $2 billion will contributed by Honda in a span of 12 years. This will be combined with a $750 million equity investment in Cruise.

“Honda chose to collaborate with Cruise and General Motors based on their leadership in autonomous and electric vehicle technology and our shared vision of a zero-emissions and zero-collision world,” said Seiji Kuraishi, Executive Vice President and Representative Director COO of Honda. “We will complement their strengths through our expertise in space efficiency and design to develop the most desirable and effective shared autonomous vehicle.”

Moreover, the addition of SoftBank investments was recently announced. The agreement brings the post-money valuation of Cruise to $14.6 billion.

“With the backing of General Motors, SoftBank and now Honda, Cruise is deeply resourced to accomplish our mission to safely deploy autonomous technology across the globe,” said Cruise CEO Kyle Vogt. “The Honda partnership paves the way for massive scale by bringing a beautiful, efficient, and purpose-built vehicle to our network of shared autonomous vehicles.”

Cruise was founded in San Francisco, California in 2013. In 2016, the company partnered with General Motors to further realize their vision.

Electric and autonomous vehicle technology are the future. It’s great to see manufacturers like Honda and General Motors invest in companies that share the same goal for mobility.