General Motors and Honda Motor Company have signed an agreement stating that they will work towards a strategic alliance in North America.
Although it is currently a non-binding memorandum of understanding, the announcement says this would include a range of vehicles to be sold under their two distinct brands and adds that planning discussions will start immediately.
The aim is to leverage the best technologies from the two brands while making substantial cost savings.
The statement also reveals that this proposed alliance would see collaboration on a ‘variety of segments in North America’ and they intend to share both ‘electrified and internal combustion propulsion systems.
It would also see cooperation in purchasing, research and development, and connected services.
Mark Reuss, president of General Motors, said: ‘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.’
Seiji Kuraishi, executive vice president of Honda Motor Company, said: ‘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.’