Nation & World

GM joins Honda to develop products in North America

They aim to share common vehicle platforms

A photographer captures images of the General Motors-Honda Next Generation Fuel Cell after a news conference in Detroit
A photographer captures images of the General Motors-Honda Next Generation Fuel Cell after a news conference in Detroit in January. (Associated Press)

DETROIT — General Motors and Honda have a deal to share vehicle platforms and technology in North America beginning next year.

On Thursday the automakers said they have signed a non-binding memorandum of understanding to establish a North American automotive alliance.

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.

Honda and GM plan to collaborate on purchasing supplies by leveraging their scale to gain costs savings.

Purchasing collaboration would focus on joint sourcing of materials, logistics and localization strategies, GM said.

The alliance will help GM and Honda achieve substantial cost savings, and allow them to continue to invest 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.

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

Under the latest 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.

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