Copyright Matt Cardy, Getty Images
72838020

GM’s Cruise Draws $2.75 Billion From Honda in Self-Driving Pact

Oct. 3, 2018
New partnership has the potential to boost the global scale of GM’s self-driving car technology and accelerate deployment of autonomous vehicles for Honda.

General Motors Co. (IW 500/4) and Honda Motor Co. are teaming up to develop a new self-driving car as the Japanese automaker takes an almost 6% stake in GM’s self-driving car unit.

Honda will make a $750 million equity investment in GM Cruise LLC in a deal that values the GM unit at $14.6 billion, plus spend $2 billion over 12 years toward deploying the autonomous vehicles, according to a statement. The deal follows a $2.25 billion investment in Cruise by SoftBank Vision Fund in May.

The new partnership has the potential to boost the global scale of GM’s self-driving car technology and accelerate deployment of autonomous vehicles for Honda. The two automakers will develop a self-driving model that can be used in a variety of ways and will be deployed in a Cruise autonomous network.

“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,” Cruise Chief Executive Officer Kyle Vogt said in the statement.

GM shares rose as much as 6% to $35.30 as of 8:22 a.m. New York time, before regular trading.

By David Welch

Popular Sponsored Recommendations

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Five Ways Aerospace and Defense MRO Can Prepare for the New Normal!

Dec. 6, 2023
The right tools can help A&D suppliers track the essentials & ultimately, boost their margins. Advanced analytics can also help determine the profitability of contracts, drive...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Electric Vehicles Spark New Opportunities in the Automotive Industry

Dec. 4, 2023
Automakers have increased plans to produce Electric Vehicles to meet customer demand for low emissions. With this radical shift, new opportunities and challenges for the auto ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!