General Motors Co. and Honda Motors Co. have teamed up to develop a new self-driving car. Honda will make a $750 million equity investment in GM Cruise LLC in a deal that values the GM unit at $14.6 billion plus spend $2 billion over 12 years toward deploying autonomous vehicles.
The partnership will advance the global scale of GM’s self driving car technology and accelerate the deployment of autonomous vehicles for Honda. The two companies will develop a self-driving model that will be deployed in a Cruise autonomous network. Cruise plans to launch an autonomous taxi network in 2019.
“With the backing of General Motors, SoftBank and now Honda, Cruise is deeply resourced to accomplish our mission to safely deploy autonomous technology across the globe,” Cruise Chief Executive Officer Kyle Vogt said in the statement.