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

gm honda alliance quite possibly both automakers just signed an mou

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]

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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.

  • MaintenanceCosts The sweet spot of this generation isn't made anymore: the SRT 392. The Scat Pack is more or less filling the same space but it lacks a lot of the goodies, including SRT suspension, brakes, and seats. The Hellcat is too much and isn't available with a manual anymore.
  • Arthur Dailey I am normally a fan of Exner's designs but by this time the front end on the Stutz like most of the rest of the vehicle is a laughable monstrosity of gauche. The interior finishes suit the rest of the vehicle. Corey please put this series out of its misery. This is one vehicle manufacturer best left on the scrap heap of history.
  • Art Vandelay I always thought what my Challenger really needed was a convertible top to make it heavier and make visability worse.
  • Dlc65688410 Please stop, we can't take anymore of this. Think about doing something on the Spanish Pegaso.
  • MaintenanceCosts A few bits of context largely missing from this article:(1) For complicated historical reasons, the feds already end up paying much of the cost of buying new transit buses of all types. It is easier legally and politically to put capital funds than operating funds into the federal budget, so the model that has developed in most US agencies is that operational costs are raised from a combination of local taxes and fares while the feds pick up much of the agencies' capital needs. So this is not really new spending but a new direction for spending that's been going on for a long time.(2) Current electric buses are range-challenged. Depending on type of service they can realistically do 100-150 miles on a charge. That's just fine for commuter service where the buses typically do one or two trips in the morning, park through the midday, and do one or two trips in the evening. It doesn't work well for all-day service. Instead of having one bus that can stay out from early in the morning until late at night (with a driver change or two) you need to bring the bus back to the garage once or twice during the day. That means you need quite a few more buses and also increases operating costs. Many agencies are saying for political reasons that they are going to go electric in this replacement cycle but the more realistic outcome is that half the buses can go electric while the other half need one more replacement cycle for battery density to improve. Once the buses can go 300 miles in all weather they will be fine for the vast majority of service.(3) With all that said, the transition to electric will be very good. Moving from straight diesel to hybrid already cut down substantially on emissions, but even reduced diesel emissions cause real public health damage in city settings. Transitioning both these buses and much of the urban truck fleet to electric will have measurable and meaningful impacts on public health.