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Honda and GM Have Joined Forces And Will Create Their self-driving Vehicle Under The Subsidiary #Cruise

Honda and GM are making major moves together and preparing to take our economy to “Driverless” world. It appears that they want to completely obliterate the taxi, urber and lyft industry.

(TechCrunch) Honda will commit $2.75 billion as part of an exclusive agreement with GM and its self-driving technology subsidiary Cruise to develop and produce a new kind of autonomous vehicle.

As part of the agreement, Honda will invest $2 billion into the effort over the next 12 years. Honda also is making an immediate and direct equity investment of $750 million into Cruise, which pushes the company’s valuation up to $14.6 billion. Honda’s investment gives the automaker a 5.7 percent stake in Cruise.

General Motors had actually acquired Cruise in 2016 for $1 billion in order to speed up its work on self-driving cars. The company is committed to deploying its fully driverless cars that don’t even have pedals or steering wheels for use in a commercial ride-hailing service by next year.

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“Shouldn’t the car of the future have giant TV screens, a mini bar, and lay-flat seats? Maybe it should. We’ve been quietly prototyping a ground-breaking new vehicle over the past two years that is fully released from the constraints of having a driver behind the wheel,” said Cruise Automation CEO Kyle Vogt, without going into too many details about what this vehicle created in partnership with Honda might look like.

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Filed in Transportation. Read more about Honda and Self-Driving Cars. Source: medium