General Motors and Honda set the beginning stages for a new strategic alliance Thursday, announcing plans to build new vehicles using each other’s technologies. In a non-binding memorandum of understanding, the announcement said both companies would jointly develop both internal combustion and electric vehicle powertrains. By doing so, each partner hopes to cut costs and pool resources to develop vehicles that will be marketed under each of GM and Honda’s brands.
The strategic alliance builds on an agreement between the parties signed back in April. The companies would jointly develop GM’s “Ultium” battery platform, while Honda would incorporate OnStar into two new EVs within the next four years. GM president Mark Reuss said of today’s announcement, “This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources. Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio.”
Both companies say the arrangement extends to vehicle platforms and powertrain technologies. Exterior and interior styling, layout and features will still be developed under each respective company, so we won’t see Honda vehicles with GM-esque interiors, or the other way around.
As it stands, the strategic alliance is still in its early stages. It’s not emphatically clear what parts of these powertrains each automaker will contribute, beyond Honda’s earlier mentioned involvement with Ultium development. Per today’s announcement, the two automakers will eventually focus on joint purchasing and collaborating on development for driver assist systems, infotainment and connectivity features in future cars.