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I must admit It’s great for the future, but I would get more excited if the article was in relation to a new model of the Civic having super cruise and is due to be launched just after June 2022 :)
Surely within the next 12 months there must be some contract announcements which will cover the likes of Volvo, VW, Toyota, Honda (without stating names of course) - it can’t be far away because they all must have car launches planned for 2022/23 which are surely being worked on now.
Honda have given a statement of their intentions for 2024 which is great.
What is as important is what do they intend to do for ENcap, ANcap etc for DMS fast approaching.
DR777, I agree that it’s a longer term benefit with regards to the Honda-GM news, typically around 3years. Don’t forget however that news broke in April and could have been shrouded In secrecy for quite some considerable time prior to that. Furthermore super Cruise has already been designed and proven which must further shorten our timescale.
DR77
I see what your saying about income in 5 years time not being that important at this moment in time.
The thing to remember is that these contracts & values will become important in couple years when a big buyer is sniffing about to buy the Co. These contracts will contribute to the Price for future earnings that any company buying will be craving.
Also once the contracts start their could be 2/3 years of engineering fees built in to the contract before the big bucks comes in. Paying wages & overheads along the way.
Lastly the future earnings potential of every model is approx 7 years average on lifetime cycles. So if 5 million units sold per year and DMs in every one @ A$14 that’s not a bad A$490 million contract that will add value to the buyout Iam sure.
TLS, great point about Veoneer, we have literally been saying that for years. Personally I think Honda and Toyota will put our Chip is every car for DMS / DSM , the supercruise link is just another clue for me and I expect we will be getting very excited about Japan soon enough.
A lot has been said about naming customers and nda but SM is a listed business so, if and when they win a first contract for a DW in Japan it must be announced to the market.
It is arguable that Honda are only considering utilising Super Cruise because they have done so much R&D with Veoneer and SEE already. Just a thought.
Dd7,
I think you have gone the other way. It is sales model year, so production will start 2023 H2.
Covid will not be causing the same disruptions by then.
Also, consider that Honda is one of Veoneer's biggest customers so our DMS is likely to appear in models even if they doubt get SuperCruise
Production of these Honda electric vehicles will combine the development expertise of both companies, and they will be manufactured at GM plants in North America. Sales are expected to begin in the 2024 model year in Honda’s United States and Canadian markets.
GM and Honda have an ongoing relationship around electrification. This includes work on fuel cells and the Cruise Origin, an electric, self-driving and shared vehicle, which was revealed in San Francisco earlier this year. Honda also joined GM’s battery module development efforts in 2018.
Sorry but just not as excited as others over this news. It's good but we probably won't see any revenue till at least 2024 and knowing how these things go it will more than likely be at least a year later. So we're looking at 5 years away.
I am totally open to someone advising me otherwise.
From the source of all those stories
https://global.honda/newsroom/news/2020/c200403eng.html
“We are in discussions with one another regarding the possibility of further extending our partnership,” Schostek said.
According to Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, “This agreement builds on our proven relationship with Honda, and further validates the technical advancements and capabilities of our Ultium batteries and our all-new EV platform.
“Importantly, it is another step on our journey to an all-electric future and delivering a profitable EV business through increased scale and capacity utilization. We have a terrific history of working closely with Honda, and this new collaboration builds on our relationship and like-minded objectives.”
As part of the agreement to jointly develop electric vehicles, Honda will incorporate GM’s OnStar safety and security services into the two EVs, seamlessly integrating them with HondaLink. Additionally, Honda plans to make GM’s hands-free advanced driver-assist technology available.
General Motors (NYSE: GM) is a global company committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun, and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, and Maven, its personal mobility brand, can be found at http://www.gm.com.
Honda Motor Co. (NYSE: HMC), Honda designs, manufactures and markets automobiles, motorcycles, power products and aviation products worldwide. A global leader in powertrain and electromotive technologies, Honda produces nearly 28 million engines annually for its three product lines. Honda and its partners build products in more than 60 manufacturing plants in 27 countries, employing more than 208,000 associates globally.
Nympti, perhaps Honda will upgrade their Honda Sensing to Super Sensing or Active Sensing
https://www.honda.co.uk/cars/world-of-honda/honda-sensing.html
April 2nd quote from Beefcakes link,
The companies say that the vehicles will be developed together, but Honda will use “unique interior and exterior designs.” The models may also have different interfaces and different driving characteristics.
The companies also announced that Honda would adopt GM's driver-assistant features called Super Cruise, although Honda won't use the same name.
Hopefully Honda look to take up super cruise in a big way over time. Electric vehicles could present a big opportunity going forwards and I didn't realise the GM ultium battery could provide a range of 400+ miles on full charge. With such a range I think having hands free driving capability would be attractive, certainly in North America. I think at the moment current EV battery tech permits a range of less than 100 miles and thus Honda are not currently building electric vechiles in USA.
Incidentally, my brother in the US was driving a Honda until recently and it had 360,000 miles on the clock. I can't remember the particular model type, but he told me his model was quite capable of doing 450,000 miles during it's lifetime!
What makes this story even more interesting is that the EV part of the story actually broke in early April '20, but only Cnet mention Supercruise, the rest is to do with EV only.
https://www.cnet.com/roadshow/news/general-motors-honda-electric-vehicles-ultium-batteries/
https://www.theverge.com/2020/4/2/21206074/gm-honda-ev-electric-vehicle-deal-battery-year-release
https://techcrunch.com/2020/04/03/gm-and-honda-are-co-developing-two-new-electric-vehicles-due-to-arrive-in-2024/
https://uk.motor1.com/news/407996/honda-gm-joint-ev/
https://www.forbes.com/sites/samabuelsamid/2020/04/02/two-new-honda-evs-to-use-gm-ultium-battery-system-and-super-cruise/#384cb22c789d
https://www.greencarreports.com/news/1127688_future-honda-electric-vehicles-will-be-co-developed-with-gm-could-have-super-cruise