Honda Motor electric vehicles due to be sold  in the US will be made with over 50% of the same parts as General Motors‘ cars, Japan’s Nikkei said.

The Japanese automaker plans to provide GM with information on an EV platform so the automakers will be building very similar EVs, the report claimed.

Honda is currently developing its e:Architecture platform for mid-size EVs that are expected to reach North American showrooms by the late 2020s. GM will use the same platform and, in return, will share information on the development of its larger EVs, Nikkei said.

The companies will be selling small to large EVs that share over 50% of their components in terms of cost.

Only exterior and interior designs will differentiate the partners’ vehicles.

Nikkei said, in general, developing one EV model requires about JPY50bn (US$455m), with batteries alone accounting for about 40% to 50% of the production cost. Converting production lines to cater to EVs costs about JPY10bn to JPY15bn per factory.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

By sharing EV platforms, Honda and GM will be able to standardise motors, batteries, inverters and other key components. This kind of collaboration will bring cost savings through the ordering of large quantities of the same parts.