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Anjani Trivedi

Carmakers Throw Money at the Future of Driving

Honda and Toyota’s investments in autonomous vehicles could prove to be pricey endeavors.

Is Honda backing the right horse?

Is Honda backing the right horse?

Photographer: David Paul Morris/Bloomberg
Updated on

Japan Inc. is leaping into the future of cars, courtesy of SoftBank Group Corp.

On Wednesday, Honda Motor Co. announced a $2.75 billion investment in General Motors Co.’s self-driving subsidiary Cruise, a departure from the Japanese carmaker’s tight-fisted approach to technology spending. That follows SoftBank Vision Fund’s $2.25 billion outlay just months ago. With these, GM Cruise is now valued at close to $15 billion.