Honda is helping GM on its mission to lead the quest towards a self-driving future. From WIRED: “In a deal announced today, the Japanese automaker will help San Francisco-based Cruise and its Detroit owner develop and mass produce a new sort vehicle for a world in which human drivers are no longer needed. Honda is opening its checkbook too, pledging to spend $2 billion on the project over 12 years, and immediately putting a $750 million equity investment into Cruise.
…For Honda, the partnership offers entree into a self-driving space where it has thus far spent little time and effort. For Cruise and GM, the newcomer adds engineering know-how as it moves to develop the self-driving car that will replace its current model, a modified Chevy Bolt EV.” Much of Honda’s engineering know-how will be of value for the interior design of the vehicles; once the driverless tech is ready, the ridership experience will hinge on the interior design of the vehicle, much like airplanes today.
WHY IT’S HOT:
In addition to being a somewhat a surprising global partnership, the joint venture between Honda and GM shows that to pioneer the future of driverless vehicles, you can’t go it alone. Strategic partnerships across financing, engineering, and manufacturing will become the norm in this race to the future, particularly due to the fact that no one knows how/when driverless will make money. This deal helps de-risk GM’s path to scale its operations into driverless with a partner that will help it execute long-term.