GM, Honda Plan to co-develop affordable electric vehicles

General Motors and Honda are planning to co-develop some affordable electric vehicles that will use next-generation Ultium battery technology.

The vehicles, which will include a compact crossover, are expected to begin going on sale in North America in 2027.

Doug Parks, GM executive vice president of global product development, purchasing and supply chain, said in a statement on Tuesday that the plan is to have an electric vehicle that is priced lower than the upcoming Chevrolet Equinox EV.

GM and Honda have successfully partnered over the years. In 2013 the companies started working together on the co-development of a next-generation fuel cell system and hydrogen storage technologies.

In 2018 Honda and GM announced that they'd team up to develop batteries for electric vehicles, mostly for the North American market. The two companies said at the time that they would collaborate based on GMs next-generation battery system.

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Last year the companies announced that GM would build one Honda SUV and one Acura SUV using its Ultium-branded electric vehicle architecture and battery system.

The companies said at the time that the Honda SUV would be named the Prologue, and that both SUVs would have bodies, interiors and driving characteristics designed by Honda. But Honda also said in June that it plans to make its own electric vehicles later this decade.