Honda, GM join forces to develop 'range of cars' in North America
Engineering work will begin in early 2021
General Motors and Honda Motor Co. have signed a non-binding memorandum of understanding to team up in North America to share vehicle R&D and engineering costs.
Under the North American automotive alliance, both companies will share common vehicle platforms, including both electrified and internal combustion propulsion systems "that align with the vehicle platforms," GM said in a Thursday announcement.
Both companies plan to begin discussing their efforts to combine vehicle platforms and technology "immediately," with engineering work beginning in early 2021. Under the deal, the companies will work on a "range of vehicles to be sold under each company's distinct brands."
GM IS GETTING OUT OF THE VENTILATOR BUSINESS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 56.25 | -0.79 | -1.38% |
| HMC | HONDA MOTOR CO. LTD. | 26.52 | +0.70 | +2.71% |
The combined efforts would effectively give both automakers the ability to "accelerate innovation" and "effectively deploy resources," GM said.
"This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources," General Motors President Mark Reuss said. "Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio."
(iStock)
Honda recognizes that the alliance with GM will enable it to better "invest in future mobility technology, while maintaining our own distinct and competitive product offerings," said Honda Executive Vice President Seiji Kuraishi.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The alliance builds upon a previous joint agreement by both companies earlier this year to develop two new electric vehicles for Honda "based on GM’s highly flexible global EV platform powered by Ultium batteries," GM said. Following this endeavor, the companies announced plans to "explore further co-development opportunities."
Both companies, which formed relations over two decades ago, have recently collaborated on fuel cells, batteries and the Cruise Origin shared autonomous vehicle.
The alliance will be overseen by a joint committee made up of senior executives from Honda and GM.