July 26 (Reuters) – Seven major automakers on Wednesday said they were forming a new company to provide electric vehicle charging in the U.S., in a challenge to Tesla (TSLA.O) and a bid to take advantage of Biden administration subsidies.
The group includes General Motors (GM.N), Stellantis (STLAM.MI), Hyundai Motor (005380.KS) and its Kia affiliate, Honda (7267.T), BMW (BMWG.DE) and Mercedes Benz (MBGn.DE) – brands representing about half of U.S. vehicle sales but a small share of the EV market dominated by Tesla.
GM, Mercedes and others have signed on to adopt Tesla-developing charging technology from 2025.
GM previously said it could save $400 million from getting access to Tesla’s network. On Wednesday, it said the new venture was part of its effort to reduce cost and “won’t change GM’s existing commitments or collaborations.”
The other automakers – Stellantis, Hyundai, Honda and BMW – have not committed to the Tesla technology known as the North American Charging Standard (NACS) and have product plans that rely on a rival known as the Combined Charging System (CCS).
The new charging company will support both charging standards but will compete with Tesla’s network.
CEOs of the seven auto brands said a charging network built out like gas stations with restrooms, food service and retail operations would support a faster EV rollout.