GM, Honda Agree To Develop Future Products In North America

DETROIT, MI — General Motors and Honda on Thursday announced they have signed an agreement establishing a North American automotive alliance. The agreement includes a range of vehicles to be sold under each company’s brands, as well as cooperation in purchasing, research and development, according to a news release.

The companies will collaborate on a variety of segments in North America, intending to share common vehicle platforms, including both electrified and internal combustion propulsion systems. Co-development planning discussions will begin immediately, with engineering work beginning in early 2021.

“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources," GM president Mark Reuss said in a statement. "Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio."

“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," said Seiji Kuraishi, executive vice president of Honda Motor Co., Ltd. "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."

The announcement builds on the agreement signed between the companies in April to jointly develop two all-new electric vehicles for Honda based on GM’s highly flexible global EV platform powered by Ultium batteries. The GM-Honda relationship, which began more than two decades ago, includes recent collaboration between the companies on fuel cells, batteries and the Cruise Origin shared autonomous vehicle.

The memorandum of understanding between the companies isn’t binding, but the move is another sign of increasing consolidation in the automotive business as companies face huge capital outlays to develop current products as well as new electric and autonomous vehicles, according to the Associated Press.

Crosstown rival Ford finalized a similar deal with Germany's Volkswagen earlier this year, while Italian-American automaker Fiat Chrysler is finalizing a merger with Frances PSA Peugeot.

In the GM-Honda deal, the companies say they'll collaborate on a “range of vehicles sold under each company's distinct brands.”

The announcement builds on work the companies have been doing jointly on electric and hydrogen fuel cell vehicles, as well as an autonomous vehicle. In April the companies announced they would jointly develop two electric vehicles for Honda based on GM's global electric vehicle platform.

Information and reporting from the Associated Press contributed to this report.