General Motors and Honda have entered the beginning stages of forming a strategic alliance in North America.
In a statement released this morning, the two automakers revealed they “have signed a non-binding memorandum of understanding following extensive preliminary discussions toward establishing a North American automotive alliance.” This proposed alliance will include cooperation in purchasing, research and development, and connected services (OnStar, etc.). Additionally, the two automakers said they will “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.”
This is a natural progression of GM and Honda’s previous electric vehicle partnership announced in April. At the time, GM said its partnership with Honda would see the two brands “jointly develop two all-new electric vehicles for Honda” using GM’s highly flexible BEV3 global EV platform and proprietary Ultium batteries. GM and Honda’s relationship actually goes back more than two decades, though the two started working more closely together when they joined forces to develop new fuel cell technology back in 2013.
GM BEV3 platform
Additionally, GM and Honda are working together on the Cruise Origin shared autonomous vehicle. The robotaxi rides on the BEV3 platform and is equipped with GM Ultium motor and batteries, but the Japanese automaker helped with aspects of the design and execution of the prototype version of the vehicle shown last year.
GM President Mark Reuss says collaborating with Honda will allow both companies to rapidly develop complex emerging vehicle technologies.
“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources,” he said. “Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio.”
“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,” added executive vice president of Honda, Seiji Kuraishi.
GM Preisdent Mark Reuss in 2020
All facets of this newly formed alliance will be overseen by a joint committee comprising of senior executives from both GM and Honda. It is not clear who will be on this committee or if its members will be made public.
Comments
I’m excited to see what Honda will do with the BEV platform considering their ability to make great city cars! I would love to see something like the Honda E, but bigger, come to the U.S. market. A compact sized BEV, rwd based, 4-door hatchback, with an awd option, slightly smaller than the Model Y.
Funny when you consider that they’re the only 2 makes in IndyCar.
Fingers crossed a new Cruze will be had utilizing the upcoming Civic Platform and an all new Malibu.
Biggest issue with GM vehicle sis not their Power trains in my opinion….it has always been their horribly cheap interiors.
I predicted this would happen back in April in a story here, and even before that. But it didn’t take a genius to see this coming, it was inevitable.
I love GM, and I always want GM to succeed. Strategic partnerships are the best way to achieve this in the future. In all honesty, GM is much better positioned than Honda is right now, with their EV platforms and batteries, autonomous tech, profitable truck and SUV platforms, etc. Honda knows this. GM does as well, which is why Honda EV’s will be built on GM platforms ($$$), and GM will also sell their batteries to other companies to use ($$$).
But this could also benefit GM in a number of ways. Like Momolos said, this could save GM sedans. The Malibu could very well live on built on the fantastic Accord platform, built here in America, by American workers. A Cruze based off the Civic could also happen. Honda also has great crossover platforms that they use for the CR-V and Pilot. GM could use these, too.
Further, Honda has some really advanced fuel cell tech that they’ve developed further beyond their initial partnership with GM years back. Think about how this could greatly increase range of GM electric vehicles.
And for the first time, Honda now has access to true, BOF truck and SUV platforms. How about a mid-size Ridgeline built off the Colorado platform? The added profits from this could justify a true Wrangler-competitor from GM. Not to mention how Honda now has access to GM’s electric vehicle platforms…and the RIDICULOUS amount of money this will make GM.
This was a great move, for both companies. GM gets fuel cell tech, sedan and crossover plaftorms with economies of scale, American plants, and terrific powerplant options. Honda gets truck and SUV platforms, electric vehicle platforms, and autonomous tech. Both save hundreds of millions in cash.
A win-win.
I wonder if the UAW will start to gain more traction at some of these other plants if GM is going to use their assembly… I kind of like having union stickers on my cars.
Now that Honda and GM are partnering, they could even use those platforms without having to badge engineer everything like with the NUMMI cars. Imagine if say, the Civic keeps on being Japanese sporty, handling and cornering focused, etc. while a potential Cruze becomes more of an American-style sport compact, focusing on straight line performance. Maybe even a Verano could come out of this partnership with a more comfortable ride and suspension. Same with the Malibu and Regal.
About the Ridgeline, it could go the other way: it could potentially be downsized and we could get a new unibody S10 or Sonoma for GM.
Alliances between automakers don’t have to mean that their cars will feel the same; there can still be changes in tuning, interiors, engine, etc. I’m excited to see what comes from this news.
@G8Burnout Your fanboying is literally making me puke.
If you love GM so much you would hate how this is going to dilute the brand as a whole. So you buy a Chevy Equinox and you’re getting a rebadged Honda with a Honda engine? If I want a Honda I will just buy a Honda.
Who cares if GM survives but it’s just a complete mishmash of crap that it didn’t even design and engineer. You are completely killing the company as a whole by doing this. Half of the products GM puts out are going to use platforms engineered in Japan by Honda and use Honda engine’s and the other half are still going to use technology engineered in Japan by Honda.
@Marco,
Sorry I triggered you, brother.
That’s not “fanboying,” it’s called being a realist with a clue. Look at this agreement. Look at both companies. Use your head for a minute. Do you really think the main thing behind this partnership is to make the Traverse based off the Pilot??
Come on, man.
The main reason, BY FAR, that this partnership is going down is so that GM can make EV’s not only for themselves, but for Honda. GM makes the entire electric platform, powertrain, electronics, etc. Honda just pops a body on those platforms. So really, GM is essentially making EV’s for not only themselves, but another entire corporation. That’s HUGE. And they are going to make bank doing it.
Anything extra, whether it be an Accord-based Malibu or a Honda V6 in a Buick sedan, is all pittance compared to the EV strategy. It’s a bonus for GM.
“If you love GM so much you would hate how this is going to dilute the brand as a whole.” Nope…its the opposite. You’d have to hate GM to think that their current business strategy would lead them to be profitable in the new world marketplace. Hate to tell ya bud, but GM vehicles have been using Korean, Chinese and Mexican parts for decades…where were you then with your “diluted” proclamations?
I’m hoping for an eventuall merger that would, again, make GM a player on the coasts, open up Japan, bring GM back to Europe.
Hyandai and Kia manage two mainstream brands. In this case Honda has a significant edge on cars while Chevy leads with body on frame SUVs and trucks.
Only overlap would be Acura with both Buick and Cadillac but all three brands can share platforms earning greater profits via scale.
If US/China relations crumble picking up Honda would better insulate GM from the shock and keep them global.
This partnership makes good sense for both marques; GM with it’s vast manufacturing facilities, and Honda with it’s top-of-the-mountain R&D.
It’s been said that Honda is a world-leading robotics company that also happens to build very good automobiles.
The R&D is both ways as GM is much farther along in advanced drive trains in Electric and Hydrogen. Honda just was limited in spending in this area and the partnership gives them access to this at GM. On the other hand GM will not have to spend as much money on ICE and continue in EV development.
The Purchasing power of both combined is very impressive.
I would wager Honda is further along with hydrogen fuel cells considering they have the production model of the Clarity available for purchase in California.
That’s what I was thinking. They both originally worked on it together, but GM focused more on electric in the recent years while Honda continued working on it. Maybe even back then, they knew(what was in the pipeline), -what we just found out, and started to diversify…
All in all, I like the joint venture, and think it’s the best fit for the both of them, -out of all the other possibilities. I think that it was the best call. Did Mary actually do something right? (: o)
Yea I think GM still wants the option to produce both plug in EVs and hydrogen powered EVs. I think there will be room for both especially once hydrogen stations become a thing.
Platform sharing wise it would be interesting if GM would be looking at sedans for Buick instead of Chevy. There won’t be direct competition to Honda.
Or if they use Honda platforms at all. Could go the other way.
Just need to give this time and see what their plans are.
Yes honda has a production clarity model… but GM has been doing some neat things with the DOD, like concepts of a fuel cell colorado. GM has been designing fuel cell vehicles for over 50 years…. Most of the consumer fuel cell vehicles rolled out so far are essentially technology demonstrators whose economics don’t make sense. Earlier fuel cells had a lot precious metal in them. Economic viability depends on reducing palladium, platinum, etc…
Not surprised since Chevy has been making their cars look like Hondas for the past 10 years…
The first gen Saturn Vue was available with a Honda V6.
RIP Saturn, truly a brand ahead of it’s time.
All Saturn ever did was steal sales from Chevy and Pontiac. It never won over the Honda, Toyota and Nissan buyers they hoped for. The very best thing about Saturn was their dealer experience which sadly seems lost forever and not imparted to any of the existing car division.
That’s true in my case; it saved me from buying a Cavalier or a Sunbird when I turned 21. I bought a better-equipped Saturn instead that got better mileage than its corporate cousins and I remained a Saturn customer for the next 25 years.
Saturn conquest sales here in the mid-Mississippi Valley were above average, which admittedly wasn’t hard to do. The Left Coast was the hardest in which to make in-roads.
This will be interesting to watch and see what happens.
The intent here is to create cost savings for GM but also cost savings and independence for the smaller Honda. Development cost are so high today that companies even the size of Honda are struggling to survive. They like BMW do not want to merge with a larger company but are open to partnerships that benefit both parties. BMW has started to work with Toyota and now Honda with GM.
This may lead to explain some of the product moves of late as this did not happen just over night. I expect both will respect each others products and will help each other with better products and technology. The buying power of both will help in cost savings as well as sharing development cost.
It will be interesting to see where the stock goes today. We have a very strong market and this is news that will interest investors.
I see the Electric going to Honda from GM and the ICE engines from Honda going into some GM products. Platforms could bring some real changes for both on future products.
This is a much better deal than the one FCA was wanting to bring to GM. Imagine that mess.
I am not a Honda fan but I do respect them and expect this will be a very beneficial deal for both moving forward.
C8R,
Keep in mind that Honda Motors has a much higher valuation than GM (43 vs 30B) and a much larger footprint around the world. And that’s not even counting Honda’s other companies and divisions. The new smaller GM does still produce more cars than Honda.
You are right that GM is more advanced on hydrogen/electric and you can add automated driving to that. Honda’s engineering is first rate.
I am just going by what the Auto analyst have been saying. They said GM was in a good place to go it alone but Honda and some others listed needed a partner to share cost.
GM has lower capital as they have been investing big since the bail out into tech. This is what Honda needs.
Where a partner like FCA was in trouble in most areas Honda is in good shape as a company it is just coming up with future tech is where they just lack the money and staff.
This is a good fit for both as long as they work together well.
GM and Honda work very well together but GM and Ford is a terrible partnership on any project. Ford works better with VW. As the industry consolidates, this may be an indication of future mergers.
You can’t ask for a better partner for GM than Honda.
ford should sell themselves to vw.
vw has everything ford doesn’t have and ford has only one thing vw needs … profitable trucks.
old man henry ford was a nazi sympathizer so i think he would whole heartedly approve this move.
You’re not wrong 🤣
Selling an iconic American company to the Germans is never a good idea.
Yeah, when Ford’s stock dips below 3 dollars a share they’ll just get a bailout. Let’s not pretend like Ford is thriving right now. They are on life support without a clear direction. You can sponsor Ken Block all day, but if you’re fighting with Toyota for market share in your own country things aren’t looking good.
Better than sell their soul to Japan like GM is doing.
Eric Vest,
The alternative in the future may be to sell to the Chinese. Which one do you prefer?
Neither choice you gave is good or inevitable.
Eric Vest,
Look what Daimler did to Chrysler…case in point.
Even if they tried to call Daimler/Chrysler a merger, it was clearly a takeover. The Germans came in and made it clear they were in charge and the top executives at Chryco immediately left. The ones who stayed found a toxic work environment that was very confrontational. Daimler couldn’t wait to get rid of the American unit. They still claim to this day that they lost 100B in this transaction during those years.
steve,
You hit the nail right on the head with this one. Henry Ford was more than a sympathizer, he was a personal friend and admirer of Hitler. And it worked both ways.
You should not blame Ford Motor Company for what it’s founder did 80 years ago. There have been millions of good people that have worked at Ford Motor Company over its history. Henry Ford’s family took some of Henry’s worst abuse and there is no indication that they are afflicted with Henry’s bad traits. For example, Henry Ford II’s best friend was Max Fisher who was a prominent Jewish businessman.
Gonna see more of this in the future as car companies try to survive by merging.
If GM is to collaborate with a Japanese care company, Honda would be the best choice. Rick Schostek, the top Honda of America American executive is a General Motors Institute graduate and a former GM employee. Even though a much smaller company, Honda’s engineering seems better than Toyota’s engineering. Toyota certainly has had many engineering problems: oil sludging, excessive oil consumption, severe truck body and frame rust problems, unintended acceleration, etc. Between engineering problems, poor styling, and declining quality it’s amazing the Toyota continues to do so well.
Capital Expenses in the New Reality of Automotive are going to be astronomical. It makes sense for companies to align or even merge to weather the autonomous/ electrification storm. I wouldn’t be surprised if in a decade, we see consolidation amongst the major players.
I can see future Ev models being built like a computer. GM could be like Intel and they could have tech in many brand models.
Same in mfg. they could be like Foxconn and build models for others.
This whole thing is going to change.
I could see a future like this potentially. Kind of like how LS swaps end up in a lot of projects. Speculating the future is weird… I think a lot of it will depend on how government policy will shape the industry.
The V8 has a limited future. Don’t expect a NSX with a V8.
Honda always identified itself as a motor company more than a car company. It’s engineering expertise focused on internal combustion engines which may limit its future. Even Honda’s lawn mowers are threatened by battery electric mowers. GM always identified itself more broadly as a automotive transportation company and has invested in electric and hydrogen vehicles for over 50 years. GM has had a history of commercializing very important new technology over its over 110 year history. If GM can repeat its history of commercializing new important technology, it’s future might be better than any of the Japanese car companies as it electrifies its products. GM might be in a similar position to Apple’s position in 2001 when Apple introduced the iPod. Prior to the iPod introduction, many tech industry experts thought Apple would be out of business in short order and now it’s the most valuable company in the world.
GM was a high tech firm for many years with being involved with the development of many tech features for cars to appliances and even space craft and aerospace needs. They lost that and had to retool post bail out to focus on technology in transportation that will feed the future.
Things like Autonomous vehicles may see limited near term use but they will develop new technology from that. EV products are not just a nice thing to do they are going to be a must have to move forward.
The real problem is these kinds of programs are like NASA like budget numbers to do. The tech center for GM is still one of the largest and best equipped facilities to do work like this.
GM’s real goal is to be seen as the automotive Apple. Eric You are very correct to use the example. To be honest Apple did get lucky if you know their history several times to survive. But GM is already in a good place to capitalize on this. Honda is like a top draft pick running back to compliment the team as they are in need of cost savings but they are not a wounded company like so many automakers anymore.
I agree with your post. Even if you have good people making good decisions, you always need luck. Hopefully GM has a Boss Kettering at the GM Tech Center guiding GM’ towards electrification. GM seems to be making good progress towards electrification from what I read in the business and automotive press over the years. Time will tell. Hopefully it all works out.
I am reading the Steve Jobs book now. It is amazing things worked out. It was the right combination and timing with innovation that all worked out.
I hope GM has the same luck here too.,
Funny you bring up Kettering as I was thinking about him when I read your first post. GM does have some of the leading people in technology at GM. I just did some work with a Chemical engineer at GM and it is amazing how deep of projects he digs in on. This guy was amazing and the things he looks at are things we on auto web sites never consider but are critical.
I think the market will come to EV over time. Everyone acts like it is a race but it is more a journey. The keys of price, range and charge times have to be right for best acceptance by the public. Some people act like Tesla is controlling the world but they are only like 1% of the auto market.
The key here is two strong partners and not a strong partner and a weak parasite partner.
Honda was a very good partner to the Rover Group. Honda was disappointed when British Aerospace sold the Rover Group’s car making operation to BMW. GM and Honda have been working together for quite some time now and the relationship appears to be a good one. Their corporate cultures appear to be compatible.
Agree GM and Honda have been together long enough to know how the relationship would be before going deeper.
As for Rover it was more a badge engineering deal with Sterling. Many may not even remember them. But at least they were more reliable than just a Rover was.
Maybe GM will have better quality vehicles and parts. Since their quality control is trash.
Not according to JD Powers. GM beat Toyota in the JD Powers Initial Quality Survey this year
if i went to costco and asked 100 people which automaker was more reliable (gm vs honda/toyota), i’d bet you anything that gm loses to both.
California doesn’t count.
What’s funny is the stats out there say Honda isn’t as good as some might say. I alway see that Toyota is way better then Honda, but I never met anyone that didn’t love there very reliable Honda or Acura. As far GM quality I think they just cut corners, they can find perfection if they wanted it’s just a matter of where you cut corners. You can find it in all car brands. Great motor bad trans, great interior bad motor etc etc
It is strange that I get down arrows stating a fact that GM did well on the latest JD Powers ratings. You would think that on a GM enthusiast web site that would be greeted as good news. I guess these down arrows are from Toyota loving trolls.
Eric Vest,
There are several orange baboon supporters here who refuse to believe anything which is scientific and from a recognized organisation. They live in a dark world of fake news, deep states and baby eating lizard conspiracies. For them, JD Power is pure evil.
When it comes to the JD power ratings for GM I thought that was for initial quality. I think the when people bring up GM on quality these days it’s not to say it’s necessarily bad quality but maybe frustration with some part being defective and GM not fixing what should be recalled or replacing it with the same bad part
gm should think about using honda’s hybrid powertrains.
gm put all of their eggs into the EV basket and abandoned hybrids.
meanwhile, honda has hybridized the civic, accord, cr-v and nsx. and the rest of the lineup will probably follow.
ev’s are still too expensive and inconvenient. with hybrids, you get pretty good gas mileage without the fuss and expense of an EV.
I’m in for the partnership of the two brands. IMO, both automakers make reliable transportation.
However, it does not mean that Honda will get BOF trucks and SUVs since the company is not known for that but Honda will benefit mostly with autonomous driving and electrification along w/ advance tech as well.
Acura could benefit as a brand and could get future RWD platforms where Cadillac may not benefit from whatever Honda offers.
Due to electrification and autonomous driving, those are one of the major reasons why major manufacturers are forming partnerships. Due to economy of scale and inflation, this will be a new norm. See what is going on with Stallantis, VW-Ford-Rivian, Toyota-BMW and BMW-Diamler and etc.