DETROIT and TORRANCE, Calif., Sept.
3, 2020 /PRNewswire/ --
- General Motors and Honda to explore sharing vehicle platforms
and propulsion systems for a variety of core segments
- Combined efforts would enable both companies to accelerate
innovation and more effectively deploy resources in advanced and
next-generation technologies
- Alliance builds on successful collaboration in electrified
vehicles and technologies
General Motors and Honda today announced they have signed a
non-binding memorandum of understanding following extensive
preliminary discussions toward establishing a North American
automotive alliance. The scope of the proposed alliance includes 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.
Under the proposed alliance, Honda and GM would collaborate on a
variety of segments in North
America, intending to share common vehicle platforms,
including both electrified and internal combustion propulsion
systems that align with the vehicle platforms. Co-development
planning discussions will begin immediately, with engineering
work beginning in early 2021.
The announcement builds on the agreement signed between the
companies in April to jointly develop two all-new electric vehicles
for Honda based on GM's highly flexible global EV platform powered
by Ultium batteries. The GM-Honda relationship, which began more
than two decades ago, includes recent collaboration between the
companies on fuel cells, batteries and the Cruise Origin shared
autonomous vehicle.
"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.
Alliance to drive scale and improve performance through
platform sharing
An alliance in North America between Honda and GM would
leverage the best technologies and generate substantial cost
efficiencies from shared vehicle platforms and propulsion systems,
joint purchasing, potential manufacturing efficiencies and other
collaboration efforts. This would enable both GM and Honda to make
greater investments in advanced and next-generation
technologies.
GM and Honda also plan to share R&D and engineering costs
for select future co-developed vehicle and propulsion platforms.
This would create substantial efficiencies and free up capital,
enabling both companies to meet the increasing requirements to
invest in various future mobility trends and additional growth
opportunities for each company's distinct brands.
Collaboration in purchasing to drive scale and
efficiency
Honda and GM plan to collaborate in joint
purchasing activities to create further cost efficiencies by
leveraging both companies' respective scale, insight and best
practices. Purchasing collaboration would be focused on joint
sourcing of materials, logistics and localization strategies.
R&D and connected services cooperation to exceed consumer
expectations
Introducing advanced technology is imperative,
given shifting consumer and regulatory requirements. To address
this challenge efficiently, the alliance would explore combining
the R&D efforts between the two companies related to advanced
technology areas, including electrical architecture, advanced
driver assist systems, infotainment, connectivity and
vehicle-to-everything communication.
In April, the companies announced that Honda will incorporate
GM's OnStar safety, security and connected services into the two
all-new electric vehicles for Honda based on GM's global EV
platform, seamlessly integrating them with HondaLink. Based on that
collaboration, GM and Honda will explore further co-development
opportunities for future connected services, including GM's
OnStar and infotainment.
All facets of the alliance will be governed by a joint
committee, comprising senior executives from both companies.
General Motors (NYSE:GM) is a global company
committed to delivering safer, better and more sustainable ways for
people to get around. General Motors, its subsidiaries and its
joint venture entities sell vehicles under the
Chevrolet, Buick, GMC, Cadillac, Holden, Baojun
and Wuling brands. More information on the company and
its subsidiaries, including OnStar, a global leader in vehicle
safety and security services, can be found
at http://www.gm.com.
Honda Motor Co. (NYSE: HMC), Honda designs, manufactures
and markets automobiles, motorcycles, power products and aviation
products worldwide. A global leader in powertrain and electromotive
technologies, Honda produces nearly 28 million engines annually for
its three product lines. Honda and its partners build products in
more than 60 manufacturing plants in 27 countries, employing more
than 208,000 associates globally.
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SOURCE General Motors Co.