Honda will contribute $2 billion over 12 years to a partnership with General Motors and its self-driving unit, the companies said Wednesday.
The Japanese carmaker will also take a $750 million stake in GM’s Cruise, bringing the total valuation of the self-driving subsidiary to $14.6 billion. Japanese-owned SoftBank Investments has also put $2.25 billion into the venture.
“We will complement their strengths through our expertise in space efficiency and design to develop the most desirable and effective shared autonomous vehicle,” Seiji Kuraishi, Honda’s executive vice president, said in a statement.
The partnership adds to an increasingly complex web of arrangements between technology giants and automotive manufacturers, despite the lack of a federal framework in the U.S. that would enable the mass production and sale of self-driving vehicles. Before purchasing Cruise, GM invested $500 million in Lyft’s autonomous vehicle program. Fiat Chrysler previously partnered with Waymo, owned by Google parent company Alphabet, and Toyota invested $500 million in Uber’s autonomous vehicle program in August.
While the House has already passed legislation on autonomous vehicles, a Senate bill is stuck amid opposition from several members. Democrats and Republicans have both expressed concerns that the lack of a national statute could drive investment away from the U.S. toward other countries, such as China.
