GM-Honda Alliance? Quite Possibly - Both Automakers Just Signed an MoU

Steph Willems
by Steph Willems

Maybe a Civic-based Chevrolet Cruze revival isn’t an insane idea after all. On Thursday morning, General Motors and Honda announced the signing of a non-binding memorandum of understanding to pave the way for a North American alliance.

Platform and powertrain sharing in several segments would be part of this strategic tie-up, the automakers claim, leading one to wonder what the future holds for the increasingly cosy longtime rivals.

“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,” the automakers said in a release. “Co-development planning discussions will begin immediately, with engineering work beginning in early 2021.”

A range of co-developed vehicles would be sold under both company’s core brands, the automakers said.

Much like Ford and Volkswagen, strategic alliances allow for a sharing of strengths and a reduction in R&D costs, but this proposed partnership strikes close to home. It’s reminiscent of the GM-Toyota joint venture of the 1980s and ’90s.

Both GM and Honda claim that the money freed up through the marriage would be put towards pricey but potentially lucrative mobility projects.

The two automakers have grown increasingly friendly in the recent past. Honda invested big to become part of the Cruise Origin autonomous vehicle project, and in April the two signed a pact to co-develop electric vehicles using GM’s Ultium battery and new EV architecture. That agreement will see two Honda vehicles launched with GM underpinnings — and even OnStar.

“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,” said Honda’s executive vice-president, Seiji Kuraishi.

For the vehicles expected to be birthed by the future alliance, R&D and development costs would be shared between the two companies. Joint purchasing would realize further savings, GM and Honda claim, along with “potential manufacturing efficiencies.”

— Matthew the Car Guy (@DudeDrivesCars) September 3, 2020

[Images: General Motors, Honda]

Steph Willems
Steph Willems

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  • Akear Akear on Sep 03, 2020

    Nothing GM makes approaches Honda's quality standards.

    • See 4 previous
    • Arthur Dailey Arthur Dailey on Sep 04, 2020

      @slavuta There was a period circa 1981 to about the turn of the century when their cars, Civic, Accord, Prelude and CRX were superior to just about anything in their respective categories. Later the CR-V was probably the top in it category. The Element is still highly regarded. And do not forget the Acura Legend and Integra. Both benchmarks in their categories and nearing 'legendary' status. Then there is JB's Accord 6 cylinder, manual, coupe. Also reported to be the best in its category.

  • Jeff S Jeff S on Sep 04, 2020

    This is an alliance and not a merger. I doubt Honda wants to merge with GM nor do they want to buy GM. This alliance could possibly not come to fruition.

    • Scoutdude Scoutdude on Sep 04, 2020

      Yeah they have signed a non-binding MOU, which means that they have agreed to talk about an alliance, have a general idea of what they want to do, but haven't finalized details and either party may walk away if the fell it isn't going where they want it to.

  • Lynchenstein @EBFlex - All ICEs are zero-emission until you start them up. Except my mom's old 95 Accord, that used to emit oil onto the ground quite a lot.
  • Charles The UAW makes me the opposite of patriotic
  • El scotto Wranglers are like good work boots, you can't make them any better. Rugged four wheel drive vehicles which ironically make great urban vehicles. Wagoneers were like handbags desired by affluent women. They've gone out of vogue. I can a Belgian company selling Jeep and Ram Trucks to a Chinese company.
  • El scotto So now would be a good time to buy an EV as a commuter car?
  • ToolGuy $1 billion / 333.3 million = $3 per U.S. person ¶ And what do I get for my 3 bucks -- cleaner air and lower fuel prices? I might be ok with this 🙂🙂