Honda and General Motors are working on a new electric car project with a starting price below $30,000. 

This project even has a corresponding codename – AEV, which stands for “Affordable Electric Vehicle”. This vehicle will be developed under the cooperation of Honda and General Motors. A few years ago, Honda demonstrated its first electric car concept Urban EV aimed at urban mobility, so there is a solid chance AEV will be based on a similar idea.

According to Honda’s executive officed Shinji Aoyama, both companies are able to develop their own cars. But this new joint venture will be a chance to share knowledge and find the best combination of technologies.

It also seems that this collaboration will not be limited just to creating the AEV electric vehicle itself. Honda and GM are reviewing their existing resources, including logistics, manufacturing plants, and sources of materials and components.

It is highly possible we will see much closer cooperation between Honda and GM in the future.