General Motors and Honda Establishing North American Strategic Alliance

General Motors and Honda have signed a non-binding memorandum of understanding toward establishing a North American automotive alliance, in which both automakers would collaborate on a variety of segments with the intention of sharing common vehicle platforms.

The scope of the proposed alliance includes 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, according to the automakers. Under the proposed alliance, this collaboration would include both electrified and internal combustion propulsion systems that align with the vehicle platforms. 

Co-development planning discussions will begin immediately, with engineering work beginning in early 2021.

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.

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

The alliance would enable both GM and Honda to make greater investments in advanced and next-generation technologies.

GM and Honda also plan to share R&D and engineering costs for select future co-developed vehicle and propulsion platforms. This would create substantial efficiencies and free up capital, enabling both companies to meet the increasing requirements to invest in various future mobility trends and additional growth opportunities for each company’s distinct brands, the companies said.

In April, the companies announced that Honda will incorporate GM’s OnStar safety, security and connected services into the two all-new electric vehicles for Honda based on GM’s global EV platform, seamlessly integrating them with HondaLink. Based on that collaboration, GM and Honda will explore further co-development opportunities for future connected services, including GM’s OnStar and infotainment.

All facets of the alliance will be governed by a joint committee, comprising senior executives from both companies.