GM's Cruise To Get $2.75 Bln From Honda To Build Self-driving Car; Stock Up

(RTTNews) - Cruise and General Motors Co. (GM) said Wednesday that they have joined forces with Honda to pursue the shared goal of transforming mobility through the large-scale deployment of autonomous vehicle technology.

Honda will work jointly with Cruise and General Motors to fund and develop a purpose-built autonomous vehicle for Cruise that can serve a wide variety of use cases and be manufactured at high volume for global deployment.

In addition, Cruise, General Motors and Honda will explore global opportunities for commercial deployment of the Cruise network.

General Motors noted that Honda will contribute about $2 billion over 12 years to these initiatives, which, together with a $750 million equity investment in Cruise, brings its total commitment to the project to $2.75 billion.

In addition to the recently announced SoftBank investments, this transaction brings the post-money valuation of Cruise to $14.6 billion.

GM is currently trading at $34.46, up $1.16 or 3.48 percent.