Investments · Self-driving cars
Honda commits $2.75 billion to GM's self-driving unit Cruise
- Investor
- Honda (Tokyo)
- In
- GM Cruise, San Francisco, California
- Value
- $2.75B ($750M equity plus about $2B over 12 years)
- Status
- The equity investment was completed in 2018.
- Date
- 2018-10-03
Honda agreed to invest $750 million in GM Cruise for a 5.7% stake and to spend about $2 billion more over 12 years on the partnership, for $2.75 billion in total. The two sides planned to develop a purpose-built self-driving vehicle for high-volume global use.
Why it matters
The partnership gave Honda access to Cruise's self-driving technology without building its own full program, and it deepened Honda's existing ties with GM.
Valuation and plans
Honda's investment raised Cruise's valuation to $14.6 billion. Cruise planned to launch a commercial self-driving ride-hailing service in 2019, and the partners said they would explore deploying the Cruise network globally. Cruise Chief Executive Kyle Vogt said the 12-year agreement was not the timeline for the new vehicle.
Earlier ties with GM
Honda and GM already had a hydrogen fuel cell joint venture, and in June 2018 they agreed that Honda would use GM battery cells and modules in electric vehicles for North America. The Cruise deal came about four months after SoftBank's Vision Fund committed $2.25 billion to the same company.
Sources
Kakehashi M&A News home
