GM And Honda to Invest $85m for a Joint Venture to Produce Hydrogen Fuel Cell Technology

Automotive - Pavan Pandey - Jan 31,2017

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gm and honda to invest 85m dollars for a joint venture to produce hydrogen fuel cell technology

GM and Honda will mutually manufacture key components to power fuel cell vehicles in the United States, growing their cooperation in green car technology.

The mutual venture to develop an advanced hydrogen fuel cell system that will be introduced in General Motors and Honda Motor Co. Ltd vehicles starting in 2020.

Each company is investing $85 million into the joint project that will create approx. 100 jobs in the Detroit region.

Honda Motor Co. and other automobile manufacturers have been working on hydrogen fuel cell vehicles for numerous years. Despite the promise of the technology and the fact that the automobiles only emit water vapor, hydrogen-powered automobiles have been very slow to gain traction.

For years, automobile manufacturers have said hydrogen-powered vehicles could have a great future as a substitute to gasoline-powered vehicles, but a lack of refilling infrastructure and growth challenges delayed their introduction. Now, Honda, Hyundai and Toyota all offer hydrogen vehicles or crossovers to customers in California and the zero-emission cars are evolving as a sensible substitute for customers.

GM and Honda originally started working together in 2013 to establish a next-generation fuel cell system and hydrogen storage technologies.

The chief operating officer of Honda in the North American region, Toshiaki Mikoshiba, said in a statement over the past three years, engineers from Honda and General Motors have been working as one team with each automaker providing know-how from its exclusive capability to produce a compact and low-price next-generation fuel cell system.

Fuel Cell System Manufacturing will be controlled by a board of directors with three officials from each automaker and a rotating president.

Honda has a big bet on hydrogen vehicles. Its latest hydrogen model, the Clarity Fuel Cell, went on auction in the United States in December last year in California with sales of eight units in its first month.

According to the Michigan-based automaker, General Motors Co., the automaker has invested more than $2.5 billion in this technology.