General motors getting some help in the race to get a self-driving car in the market. Wednesday announcing Honda will fork over two billion dollars for a stake in Cruise, GM's self-driving unit. The investment underscoring how costly it is for automakers to work on an emerging technology that has yet to prove itself.
Reuters Detroit correspondent Nick Carey.>> It's an untested technology and consumers are not that sure about it yet. So what this is going to require to have cars that will drive themselves is tens of billions of dollars, if not more. Over an extended period of time without any revenue stream in return in the forseeable future.
So for automakers, it makes sense to club together.>> GM gets this cash infusion on top of the two and a quarter billion dollars Japan's SoftBank already agreed to invest. For its part, Honda, which has been slow to the self-driving market gets to hitch its wagon to a company that already has a head start.
Honda, GM and Cruise will jointly develop the vehicles for use by ride servicing fleets around the world. It will take the might of all three to compete with Alphabet's WAYMO, industry insiders say, GM crews and WAYMO are neck and neck as leaders, among a group of auto and technology companies, competing to create a market self driving cars.
And that's forcing all kind of tie ups.>> BMW is teamed up with Intel and AppDev, and Magna, a Canadian supplier to work on autonomous vehicle technology. Daimler and Renault have teamed up to work on the technology, and I think we´re going to see more of this.>> GM maintained Wednesday, its first fleet of self-driving cars will be ready next year.
Investors like the idea of GM having a partner to split the cost, shares of the U.S. auto maker rose on the news.