At least one of the upcoming vehicles will be a compact crossover, according to hints from the announcement, which is hardly surprising given the popularity of that segment.
In general, the two companies announced that they will build cars “based on a new global architecture using next-generation Ultium battery technology,” By sharing the new platform globally, plus standardized assembly equipment and processes the companies want to have greater economies of scale, which should significantly reduce produce costs.
Reduced costs mean that the resultant cars will be affordable. In fact, according to GM’s executive vice president, Douglas Parks, the duo is targeting “a price point lower than the upcoming Chevrolet Equinox EV” The new Equinox is supposed to start around $30,000 which was also the starting price of the highly popular Tesla Model 3.
This isn’t the first time the two companies have partnered, Honda Prologue and Acura SUV will be manufactured by GM’s North America factories using the Ultium battery technology. The two automakers also partner in Cruise, an Automation program to work on the large-scale deployment of autonomous vehicles. In Cruise, Honda has pledged a $2 billion investment over the course of 12 years, plus a $750-million equity investment.