General Motors and Honda to form US alliance

The two automotive companies will share technology. Photo: GM

General Motors and Honda are teaming up to make cars together for the North American market.

The scope of the proposed alliance includes a range of vehicles to be sold under each company’s brands, as well as cooperation in purchasing, research and development, and connected services.

Under the proposed alliance, Honda and GM would collaborate on a variety of segments in North America, intending to share common vehicle platforms, including 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 alliance will help free up additional resources for both companies for future mobility innovations, said GM’s president, Mark Reuss in a press statement.

“Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio,” he said.

Ford Honda, the partnership means combining the strengths of each company, said Seiji Kuraishi, executive vice president of Honda Motor Company.

“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,” he said.

“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.”

GM earlier this year pledged US$20 billion (NZ$29b) toward EV and autonomous vehicle development through 2025. It plans to launch 20 EVs globally by 2023 and says Cadillac, its lead EV brand, will have a fully electric lineup within the decade.

This alliance follows the other American giant, Fiat Chrysler (FCA) in talks with Peugeot maker PSA Group to merge.