Hyperdrive
GM's Cruise Draws $2.75 Billion From Honda in Self-Driving Pact
- Deal boosts valuation of self-driving unit to $14.6 billion
- GM shares rise as much 5.3%, biggest jump in four months
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General Motors Co.’s self-driving car unit drew its second major investment in a matter of months, with Honda Motor Co. committing to spend $2.75 billion on backing the company and joining forces to bring autonomous vehicles to market.
Honda’s partnership will strengthen GM’s position as one of the front-runners in the packed race to bring self-driving vehicles to market. The Japanese carmaker will make a $750 million equity investment in GM Cruise LLC, plus spend $2 billion over 12 years on jointly developing and deploying autonomous vehicles, according to a statement.