General Motors Company GM and Honda Motor Co., Ltd. HMC recently announced their collaboration to jointly develop two electric vehicles (EV) for the latter, to be built at the North American manufacturing facilities of the former.
The vehicles will feature General Motors’ proprietary Ultium battery technology, while their designs will be exclusive to Honda and the vehicle platform will be engineered to support Honda’s driving character. Per General Motors, the Ultium battery-powered vehicles can cover 400 miles on full charge.
Further, the two auto biggies had previously partnered on the production of fuel cells and also made a major contribution to the Cruise Origin’s autonomous driving technology. In 2018, Honda also joined General Motors’ battery module development efforts.
Per Honda, this expanded partnership will unlock economies of scale to accelerate its electrification roadmap and advance its industry-leading efforts to reduce greenhouse gas emissions.
Honda will also incorporate General Motors’ hands-free advanced driver-assist technology and its OnStar safety and security services in the two all-electric vehicles, seamlessly integrating them with HondaLink. Both EVs are slated for a 2024 release in Honda’s U.S. and Canadian markets.
Meanwhile, General Motors aims to spend more than $20 billion through 2025 to launch gen-next EVs powered by new, low-cost batteries. This is likely to bolster the firm’s long-term prospects.
Meanwhile, Hond aims to generate 66% of its global automobile sales from EVs by 2030. Honda’s 2030 vision, which reveals the future path of the Japanese auto giant, emphasizes on electrified mobility products to achieve a zero-carbon society.
Zacks Rank & Stocks to Consider
While General Motors currently carries a Zacks Rank #5 (Strong Sell), Honda carries a Zacks Rank of 3 (Hold).
Some better-ranked stocks in the same sector are Fox Factory Holding Corp. FOXF and Adient plc. ADNT, both carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
Adient PLC (ADNT) : Free Stock Analysis Report
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