Honda, General Motors sign deal to work on vehicles together.
                     HONDA, GENERAL MOTORS SIGN 
DEAL TO  WORK  ON  VEHICLES  
TOGETHER
INTRODUCTION
• General Motors and Honda are moving toward 
an alliance in North America to share vehicle 
development and technology costs as the 
industry moves toward electric and autonomous 
vehicles.
Source: Thinis
COMPANY PROFILE
• GENRAL MOTORS • HONDA
– It is an American multinational – It is a Japanese public multinational 
corporation that designs, manufactures, conglomerate corporation primarily 
markets, and distributes vehicles and known as a manufacturer of automobiles, 
vehicle parts, and sells financial services. motorcycles, and power equipment.
– CEO: Mary Barra – CEO: Takahiro Hachigo
– Founder: William C. Durant, Charles Mott – Founder: Soichiro Honda
Source: WBUR Source: ET
MEMORANDUM OF 
UNDERSTANDING
• The nonbinding MOU was announced, and the companies say they plan to share vehicle 
underpinnings as well as engines and transmissions.
• It’s the sign of increasing consolidation in the automotive business. 
Source: Mlive.com
EFFICIENT USE
• The auto industry has a long history of being pressured by costs and lower (profit) margins.
• So both the companies are trying to get to the other side on an expensive vehicle 
development process and being able to do that as efficiently as possible.
Source: Daily News
MANUFACTURING
• No details were given on what vehicles would be developed jointly, but the companies are 
planning that they will include vehicles powered by both electricity and internal combustion 
engines. 
• Engineering work would begin early next year. They also will cooperate on manufacturing, 
parts purchasing, research and connected services.
Source: The Car Connection
SIMILAR DEAL
• Last year Ford finalized a similar deal with Germany's Volkswagen.
• While Italian-American automaker Fiat Chrysler is heading toward a merger with France's PSA 
Peugeot early in 2021.
Source: Electrek
GM-HONDA DEAL
• In the GM-Honda deal, the companies say they'll collaborate on a “range of vehicles sold 
under each company's distinct brands.
• The companies have been doing jointly on electric and hydrogen fuel cell vehicles.
Source: wtol.com
COOPERATION
• The companies announced that they will jointly 
develop two electric vehicles for Honda based 
on GM's global electric vehicle platform. 
• As the fuel cell work started in 2013, so it's no 
surprise that the cooperation would be 
broadened.
Source: Devdicourse
INVESTMENT
• The alliance will help both companies 
accelerate investment in future mobility 
innovation by freeing up additional 
resources.
• The companies will get significant 
synergies in developing vehicles.
Source: The Finapolis
JOINT COMMITTEE
• The alliance would be governed by a joint 
committee of senior executives from both 
companies.
• This will lead towards achieving sustainable cost 
efficiency and allow to invest in innovative 
technology.
Source: The Financial Express