Honda is investing $750 million in Cruise, the self-driving car startup whose minority shareholder is General Motors. The deal values Cruise at $14.6 billion. The deal is important for Honda because until now it has been a laggard in the race to build self-driving cars.
Honda also said on Wednesday that it plans to invest $2 billion over the next 12 years to develop and manufacture self-driving cars based on Cruise’s software.
“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,” Honda said in a press release.