General Motors and Honda Collaborate On Autonomous Technology
This is a big, big partnership that could put the other market players on red alertby Sidd Dhimaan, on
A lot of partnerships are arising these days. It’s not just automakers and tech companies, but also automakers and automakers. This time, it’s General Motors and Honda teaming up to take on the world with Autonomous Technology. General Motors and Cruise Automation announced collaboration with Japanese giant, Honda that will seek “large-scale deployment” of technology for autonomous vehicles.
It Looks Like Honda Has A Lot Of Faith In This Partnership
Since these are two of industry’s biggest names, you can imagine the investment that went into this deal - or maybe you can’t.
Honda alone will be investing $2 billion over the next 12 years! This is separate from the $750 million equity investment in Cruise Automation. That makes it a grand total of $2.75 billion.
This is one of the largest investments in the automation industry. Cruise Automation has investments from global giants like SoftBank as well, bringing its capital value to $14.6 billion.
Mary Barra, General Motors’ CEO, said “This is the logical next step in General Motors and Honda’s relationship, given our joint work on electric vehicles, and our close integration with Cruise,” also adding, “Together, we can provide Cruise with the world’s best design, engineering and manufacturing expertise, and global reach to establish them as the leader in autonomous vehicle technology – while they move to deploy self-driving vehicles at scale.”
Partnerships are slowly becoming an integral part of the industry.
With the technology moving forward, automakers have realized that you cannot survive alone, so it’s better to collaborate and sow the seeds in a high-volume, then reap the fruits together. It’s not just the automakers, but also start-ups that believe in strategic alliances. In fact, Chinese automaker Geely went to the extent of saying that only two or three manufacturers would exist in the future; so collaborations are needed to survive.
Now, we are not sure if that "apocalypse" would happen, but at least technology is moving ahead at brisk speed because of these high-monetary partnerships. Do you think automakers and companies should collaborate this way and create some sort of a Cartel, or should they play alone even if it involves getting eaten off by the whales of the industry? Share your thoughts in the comments section below.
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