Honda teams up with GM on self-driving cars

Honda and General Motors have teamed up to develop a new generation fully autonomous cars. Honda will invest over 12 years $2 billion in GM's autonomous vehicles subsidiary Cruise.

GM and Cruise are building and developing self driving versions of GM’s Chevrolet Bolt EV. They plan to deploy a fleet for public use in the coming year. The companies announced that Cruise would begin to develop a vehicle that was not based on an existing car with Honda's financial and engineering assistance. The next step for autonomous driving will be a vehicle that is completely devoid of human controls.

Donald Amman, GM President, said: "This vehicle is a purpose built vehicle. It will be the very first vehicle to be produced in large quantities that does not have a driver behind the wheel or a vehicle designed for a specific design."

Amman did not give a specific date for when Cruise Automation's autonomous vehicles would be transporting members of the public in either the Bolt EV, or the new vehicle. Amman will only deploy the cars when they have been determined to be safe.

Honda invested $750 million in the company. Cruise's total value is $14.6 billion, thanks to the Honda and Softbank investment.

Zo Rahim is the Research Manager for Cox Automotive, a media company that covers automotive. She said: "Autonomous cars are not just a Silicon Valley dream." Current auto manufacturers will dictate the direction of mass mobility in the future.

GM's shares rose 2% Wednesday.

Honda and GM are working together to develop electric car batteries and hydrogen fuel cell technology, which converts hydrogen gas into electricity. Cruise Automation and Honda's previous collaboration led to the new partnership.

GM (GM), boasts about the Bolt EV's self-driving capabilities, and claims to be the only automaker currently building autonomous vehicles in a production environment. Both companies refused to say when or where the new vehicle would be manufactured.