Honda teams with GM's Cruise start-up to develop autonomous vehicles

LOS ANGELES – Japanese carmaker Honda has joined forces with the General Motors tech start-up Cruise to develop autonomous vehicles as the race to market self-driving cars heats up, the companies announced Wednesday. Honda's investment promises broader market access for the new cars once they are ready for the public. The Japanese government hopes to showcase self-driving cars when Tokyo hosts the Summer Olympics in 2020. With a $2.75 billion commitment in equity and shared development costs over 12 years, Honda joins Japanese conglomerate SoftBank in backing the GM venture to create a multi-purpose vehicle that can be manufactured in high volume for use worldwide, the U.S. auto giant said. Major automakers, start-ups and tech firms are racing to develop truly autonomous vehicles, which the industries see as the next frontier in personal mobility. Honda's announcement comes on the heels of Toyota's move in August to invest $500 million in the ride-hailing service Uber to collaborate on a similar venture to mass-produce self-driving vehicles.