Honda and General Motors work together to create an affordable electric car

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Honda and General Motors are working on the development of a new electric car, with an initial market price that is projected to be below 30 thousand dollars.

As a result of this collaboration, both companies plan to jointly launch their economical electric car at the end of this decade.

Honda and GM join forces to develop an electric car

Internally, both companies are working on this project, codenamed “Affordable Electric Vehicle” or AEV, which simply means “Affordable Electric Vehicle”. This vehicle will be developed under the cooperation of Honda and General Motors.

Honda already has ground gained in this area. A few years ago, he showed his first electric car concept, Urban EV, intended for urban mobility. Based on this background, there is a strong possibility that AEV is based on a similar idea.

According to Shinji Aoyama, a senior executive at Honda, both companies can develop their own cars. But this new joint venture will be an opportunity to share knowledge and find the best combination of technologies. “We believe that holistic collaboration is mutually beneficial, not just for the platform [de vehículos] but also for purchases and acquisitions”, said Aoyama. “Collaboration is the future”he added.

It is hoped that this collaborative work will not be limited only to the creation of its own AEV electric vehicle. Honda and GM are analyzing their available resources, including their logistics capabilities, their manufacturing plants and the sources of materials and components. This initiative seeks to exploit the best of the capabilities of each respective brand.

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“Both Honda and GM have enough technologies to build [nuestros propios autos]”Aoyama said. “So now engineers from both entities are disclosing the technologies that we have and then trying to discuss what technologies might be optimal for both.”

According to the projections of both companies regarding this initiative, this affordable electric vehicle (AEV) should see the light of day in 2027, coming onto the market with an initial price of less than 30,000 dollars.

“From now on, everything from procurement and materials to resource circulation is a complete package”Aoyama said. “We have to realize everything in this area, not just battery electric vehicles”.

Both companies have a plan to become carbon neutral. While GM set its goal for 2040, Honda did it for 2050.