Honda and General Motors team up for an alliance in North America

General Motors and Honda have recently announced that they have signed a non-binding memorandum of understanding to form an automotive alliance for the North American market. The scope of the alliance includes a range of vehicles to be sold under each of the distinct brands, as well as cooperation for purchasing, research and development, and connected services.

While it may come as a surprise to some the deal has long been in the works. In April of 2020, both companies had announced that they will be jointly developing two new electric vehicles for Honda. The new vehicle will be utilizing GM’s global EV platform along with a new Ultium battery pack. Honda, on the other hand, will be engineering the exterior and interior of the vehicle. The recent signing of the non-binding memorandum might be a sign that these two companies want to take their partnership further and develop more vehicles together.

As part of the memorandum, both automotive brands will be collaborating with purchasing supplies by utilizing their size and scale to gain cost savings. The purchasing collaboration will focus on gathering materials, logistics, and localization strategies. A move that will greatly benefit both manufacturers especially during these turbulent times.