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

Steph Willems
by Steph Willems
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.

  • Bullnuke It may be awhile before these show up on US shores. The MV Fremantle Highway has just started demo/reconstruction in Rotterdam after the large fire when transporting its last shipment of electric Porsche products.
  • Fie on Fiasler Big, fast and thirsty does not equal good. True luxury is not cobbled together by the UAW.
  • Inside Looking Out I see it as gladiator races - only one survives in virtual world.
  • Crown They need to put the EcoDiesel back in the Grand Cherokee. I have a 2018 and it has been the most reliable vehicle I ever owned. 69,000 miles and only needed tires, and regular oil and fuel filter changes.
  • El scotto Y'all are overthinking this. Find some young hard-charging DA seeking the TV limelight to lock this kid up. Heck, have John Boehner come up from Cincy to help the young DA get his political career going. Better yet, have the young DA spin this as hard as he or she can; I'm the candidate for Law and Order, I defied our go-easy office and leadership to get this identified criminal locked up. Oh this could be spun more than a hyper active kid's top.Now I'd do some consulting work for Little Kings Original Cream Ale and Skyline Chili.