Honda is teaming up with General Motors in the race to develop fully autonomous vehicles.
The Japanese automaker has agreed to purchase a $750 million stake in Cruise, G.M.’s autonomous vehicles unit, and contribute $2 billion to the project over the next 12 years.
“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,” G.M.’s chief executive, Mary T. Barra, said in a statement.
Earlier this year SoftBank, the Japanese technology and investment firm, invested $2.25 billion in Cruise. As part of that deal, G.M. said it would put an additional $1.1 billion of its own money into the unit, which is known as G.M. Cruise Holdings and is based in San Francisco. SoftBank’s investment was made through its Vision Fund, which focuses on the technology sector.
“With the backing of General Motors, SoftBank and Honda, Cruise is deeply resourced to accomplish our mission to safely deploy autonomous technology across the globe,” said Cruise’s chief executive, Kyle Vogt.
After the deal, Cruise will be valued at $14.5 billion, G.M. said.