DETROIT — General Motors and Honda say they have signed a deal to explore sharing vehicle underpinnings and propulsion systems in North America.
The companies say planning discussions on jointly designed vehicles will start immediately and include vehicles powered by both electricity and internal combustion engines. Engineering work would begin early next year.
Honda and GM say in a statement Thursday that they'll also cooperate on purchasing, research and connected services. The memorandum of understanding between the companies isn't binding. But the move is another sign of increasing consolidation in the automotive business as companies face huge capital outlays to develop current products as well as new electric and autonomous vehicles.
“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.
“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.
The Associated Press contributed to this report.