Honda To Invest $2.8bn In GM’s Self-Driving Car Unit

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The Japanese car-maker Honda is set to invest $2.8 billion towards the creation of driverless cars. The company will be taking a stake in General Motor’s self driving unit GM Cruise in order to enable autonomous vehicles to be manufactured en masse.

In a statement regarding Honda’s partnership with GM Cruise, the companies outlined that Honda will invest $2 billion over a 12 year period to contribute to self-driving vehicle initiatives in addition to it’s equity investment in GM Cruise. SoftBank, a technology and investment firm, has also taken a 19.6% stake in GM Cruise, investing $2.2 billion in June of this year.

GM Cruise is aiming to produce an electric vehicle that does not contain a steering wheel or pedals, and will primarily serve as a taxi or delivery car. According to the Chief Executive of GM Cruise: “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.”

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Honda is not the first car company planning to develop self-driving cars, and it is said that Honda’s partnership with GM Cruise may be as a result of rival companies including Toyota planning to join forces with specialized companies to build autonomous vehicles. The US are currently re-writing safety rules in order to permit driverless cars on roads.