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GM and Honda to establish strategic alliance in North America

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A General Motors employee works Dec. 13, 2019 at the automaker’s plant in Wentzville, Missouri.

Photo by Melissa Vaeth for General Motors

General Motors and Honda Motor have signed a non-binding memorandum of understanding toward establishing a North American automotive alliance that includes collaborating on future vehicles and sharing purchasing costs.

The companies said they’ll immediately start working on new vehicles together with engineering work beginning in early 2021.

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

The tie-up builds upon an announced agreement between the companies in April to jointly develop two new electric vehicles for Honda based on GM’s highly upcoming global EV platform and Ultium battery technology.

The alliance, according to the companies, will include 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.”

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