General Motors (GM) and Honda have just signed a non-binding memorandum of understanding to establish a North American automotive alliance. Under the proposed alliance, the two entities will co-develop and share common vehicle platforms, with …
General Motors and Honda have just signed a non-binding memorandum of understanding to establish a North American automotive alliance. Under the proposed alliance, the two entities will co-develop and share common vehicle platforms, with planning discussions to begin immediately, followed by engineering work beginning in early 2021. North America is Honda’s biggest market, and GM’s second largest after China.
This new alliance, however, is created so that the two companies can leverage the best technologies, generating substantial cost efficiencies from shared vehicle platforms, propulsion systems, joint purchasing , potential manufacturing efficiencies, and other collaborative efforts. They also plan to share R&D and engineering costs for jointly-developed vehicles and powertrains in the future.
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