GM And Honda Are Working Together To Build Four Cars
Automakers working together is nothing new. Earlier this year, Fiat Chrysler and Peugeot merged into what is now called ‘Stellantis’. Next up, General Motors and Honda. The two companies have signed a “non-binding memorandum of understanding following extensive preliminary discussions toward establishing a North American automotive alliance”.
Honda released a press statement saying the pair will share vehicle platforms and “propulsion systems,” notably internal combustion, electric, and hydrogen fuel cell powertrains. Co-development planning discussions will begin immediately, with engineering work beginning in early 2021.
Back in April, the two companies signed an agreement to jointly develop two all-new electric vehicles for Honda based on GM’s EV platform.
“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.
An alliance in North America between the two would leverage the best technologies and generate substantial cost efficiencies from shared vehicle platforms and propulsion systems, joint purchasing, potential manufacturing efficiencies, and other collaboration efforts. This would enable both GM and Honda to make greater investments in advanced and next-generation technologies.
All facets of the alliance will be governed by a joint committee, comprising senior executives from both companies.