Automotive industry giants Honda and General Motors announced back in April that they were set to build two all-new electric vehicles. Now, the two companies have signed a non-binding memorandum of understanding that will establish a new automotive alliance in North America.
Through this partnership, Honda and GM will be sharing common vehicle platforms for both electrified and internal combustion propulsion systems to build a range of vehicles that will be sold under each company’s distinct brands.
This new alliance is also expected to generate substantial cost efficiencies for both companies through joint purchasing and other collaboration efforts. In addition, the two plan on sharing R&D and engineering costs for some of the co-developed vehicles and propulsion platforms in the future. This will give more leeway for both companies in terms of budget, and will allow them to invest in other ventures in the coming years.
“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources,” said Mark Reuss, president of General Motors. “Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio.”
For his part, Seiji Kuraishi, executive vice president of Honda Motor Company, said: “Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings.
“Combining the strengths of each company, and by carefully determining what we will do on our own and what we will do in collaboration, we will strive to build a win-win relationship to create new value for our customers. In this way, Honda will continue making steady progress in solidifying our existing business by realizing strong products, strong manufacturing capability, and a strong business structure.”
