The Strategist

Honda and GM decide to create a strategic alliance in North America

09/04/2020 - 03:40

Japan's Honda Motor and US General Motors on Thursday signed a letter of intent to create an alliance in North America, which could include cooperation on procurement and common transport platforms.

Honda officials hope the alliance will generate significant cost savings in North America, The Wall Street Journal reported.

In April, the companies announced that they had agreed to jointly develop two electric vehicles for Honda based on GM's global electric vehicle platform powered by Ultium batteries.

"This alliance will help both companies accelerate their investments in future mobility innovation by freeing up additional resources," said GM President Mark Royce.

The companies intend to share the costs of R&D and development of some vehicles and engines in the future.

GM shares were down 0.4% during Thursday's trading. Since the beginning of the year, the capitalization of the American automaker has decreased by almost 16%, Honda - by 13%.