General Motors and Honda announced Thursday they will begin partnering in several different areas of work next year in North America.
Both automakers signed a memorandum of understandings after talks. They plan to share common vehicle platforms and technology ideas, and comes after an agreement signed in April to develop all-new electric vehicles for Honda based on GM's EV platform.
The proposal will include a range of vehicles sold under each company's brands.
“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,” GM President Mark Reuss said in a statement.
“Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings. Combining the strengths of each company, and 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. 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,” said Seiji Kuraishi, executive vice president of Honda Motor Co., Ltd.
According to the companies, the plan will use the best technologies from both companies and makes costs more efficient for shared vehicle platforms and propulsion systems, joint purchasing and more. The companies said it will allow them to make more investments in advanced and next-generation technologies.