General Motors Co. and Honda Motor Co. said Thursday that they have signed a memo of understanding to form a North American automotive alliance that may include a range of vehicles sold under both brands and further cooperation in purchasing, research and development and platforms.
Under the nonbinding agreement, co-development of common platforms, including for electrified and internal combustion vehicles, will begin in early 2021.
The agreement builds on a partnership announced in April, in which GM will help develop two new electric vehicles for Honda that will be powered by GM's upcoming Ultium batteries.
Honda, a middling-size player on the global field, has been gradually expanding its cooperation with GM in recent years, amid a rush toward consolidation among some rivals.
“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources,” GM President Mark Reuss said in a joint statement. “Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio.”
The joint statement did not mention whether the companies would be taking stakes in each other. In recent years, Honda has routinely rebuffed suggestions it needs a capital alliance with another player to leverage scale, saying it prefers loose alliances centered around product.
Under the proposed alliance, Honda and GM would collaborate on a variety of segments for the key North American market. The companies will also coordinate on new technologies, vehicle platforms, connectivity, propulsion systems, joint purchasing and manufacturing, they said. Purchasing collaboration, for example, would target materials, logistics and localization strategies.
“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.
Savings are expected through the combined scale of the two companies, which are among the continent’s biggest-selling car manufacturers.
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September 03, 2020 at 07:14PM
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GM, Honda to form North American auto alliance - Crain's Detroit Business
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