GM, Honda to Invest $85M in Michigan, Create 100 Jobs

(Updated) DETROIT, MI — Two global leaders in fuel-cell technology — General Motors Co. and Honda Motor Co. Ltd. — said Monday they would jointly invest $85 million in Brownstown, Michigan, to produce hydrogen fuel cells, according to media reports. The investment is expected to create about 100 jobs.

The Michigan Strategic Fund Board, which approved a $2 million performance-based grant to support the project. Fuel cell technology is a clean energy source that operates on hydrogen, decreases dependence on oil and reduces carbon emissions.

The two automakers will each invest $42.5 million in the venture

The two companies are investing equal amounts in the venture — Fuel Cell System Manufacturing LLC — to produce a hydrogen fuel-cell system that both automakers will use in their vehicles within three years.
The two automakers have been working together since 2013 on the next generation fuel system Toshiaki Mikoshiba, chief operating officer of the North American Region for Honda Motor Co. Ltd. and president of Honda North America Inc., said in a statement.

“This foundation of outstanding teamwork will now take us to the stage of joint mass production of a fuel cell system that will help each company create new value for our customers in fuel cell vehicles of the future,” he said.

Mark Reuss, GM’s head of global product development, purchasing and supply chain, said the alliance brings fuel-cell technology “closer to the mainstream.”

“The eventual deployment of this technology in passenger vehicles will create more differentiated and environmentally friendly transportation options for consumers,” he said in a statement.

Photo by Andrea_44 via Flickr Commons