General Motors and Honda have a deal to share vehicle platforms and technology in North America starting next year.
On Sept. 3 the automakers said they have signed a nonbinding memorandum of understanding to establish a North American automotive alliance. The deal has come together after extensive discussions.
The proposed alliance will include sharing a range of vehicles, to be sold under each company’s distinct brands, as well as cooperation in purchasing, research and development, and connected services.
The alliance will help GM and Honda achieve substantial cost savings in developing future products.
“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.”
In April, GM and Honda announced they have agreed to jointly develop two all-new electric vehicles for Honda. Those vehicles will be on GM’s global EV platform powered by proprietary Ultium batteries, but Honda will design the exteriors and interiors. The platform will be engineered to match the way Honda vehicles handle on the road. At the time, GM said this was “another step” toward its vision of an all-electric future.
The GM-Honda relationship, which began more than two decades ago, includes recent collaborations on fuel cells, batteries and the Cruise Origin shared autonomous vehicle.