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Honda and GM Join Forces

Image via GV Chana on Unsplash

Automobile giants Honda and General Motors announced they will team up to share costs and technologies as the industry transitions towards newer technologies.

The two announced yesterday that they have signed a non-binding memorandum of understanding to establish a North American automotive alliance. The agreement will see Honda and GM share vehicles, which will be sold under each company's own brand, as well as working together for purchasing, research and development and connected services.

Honda and GM will co-develop vehicle and propulsion platforms and will be "combining the R&D efforts between the two companies related to advanced technology areas, including electrical architecture, advanced driver assist systems, infotainment, connectivity and vehicle-to-everything communication."

"This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources," GM 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."

This isn't Honda and GM's first time working together. The two companies have worked together for more than two decades with recent collaborations in fuel cells, batteries and the Cruise Origin autonomous vehicle.

The companies will begin planning discussions immediately with engineering work scheduled to begin in 2021. The coalition will be overseen by a committee comprised of senior executives from each company.

"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," Honda executive vice president Seiji Kuraishi said. 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."

The partnership is the latest in a string of alliances between automakers to develop more economically-friendly vehicles and share costs. Toyota has worked with Mazda and Subaru, while Ford and Volkswagen have teamed up to work on electric vehicles and autonomous driving.

With everyone trying to keep pace with Tesla, which has become the world's most valuable automaker, the partnership between Honda and GM isn't likely to be the last.

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