A General Motors employee works at a car factory in Wentsville, Missouri on December 13, 2019.
Melissa Vaeth’s photo for General Motors
General Motors and Honda Motor have signed a non-binding Memorandum of Understanding for the establishment of a North American automotive alliance that includes cooperation and purchase cost sharing for future vehicles.
The company said it would immediately begin planning for the new vehicle, with engineering work expected to begin in early 2021.
According to the company, the alliance will include “a range of vehicles sold under each company’s unique brand, as well as cooperation on purchasing, research and development and connected services”.
The combined efficiencies of the two companies are expected to free up cash for both companies to invest in advanced and next-generation autonomous and electric vehicle technology.
GM President Mark Royce said in a statement Thursday that the alliance will help both companies accelerate their investment in future mobility innovations by freeing up additional resources.
The announcement had little impact on Honda and GM’s stock prices, both trading at less than 1% as the market opened Thursday.
Reuss did not disclose financial information, but said the details would be disclosed once the deal was made.
Seji Kuraishi, Senior Vice President at Honda, said, “This new partnership with GM allows us to achieve significant cost efficiencies in North America, while investing in future mobility technologies while maintaining a unique and competitive product offering.” statement.
All aspects of the alliance are managed by a joint committee of senior management from both companies.
This alliance is based on an agreement between companies announced in April. Joint development of two new electric vehicles For Honda based on GM’s upcoming global EV platform and Ultium battery technology. The company also has partnerships in fuel cell technology, batteries and GM’s majority subsidiaries. cruise, Honda is a minority owner following the $2.75 billion investment announced in 2018.