Honda Vehicles at Dealership Photo: Getty Images

GM, Honda partner to develop future auto, tech products

*Cost-savings, quicker reaction to changing technology, consumer satisfaction all possible benefits

*Our companies have different cultures, unique strengths, but we share several common goals, says Honda Executive Vice-President

Web Editor | ConsumerConnect

General Motors (GM) and Honda have signed a deal to share vehicle platforms and technology in North America starting next year.

It was gathered that as the automakers inked the partnership deal Thursday, September 3, 2020, the deal is non-binding.

But their collective hope is to produce a wide variety of vehicles that would be sold under each company’s own banner, report stated.

The two automotive giants would collaborate on connected services, research and development, and purchasing.

According to report, the business relationship between GM and Honda is nothing new.

Such began more than two decades ago and, over the last few years, the relationship has gained momentum as the two companies sought out commonalities in key technologies such as electrification and autonomous vehicles.

Seji Kuraishi, Honda Executive Vice-President, said: “Our companies have different cultures and unique strengths, but we share several common goals.”

“This includes a commitment to creating sustainable mobility with Zero Collisions and Zero CO2 emissions.

“Toward this shared objective, GM has demonstrated a major proficiency in battery electric vehicles, while, at Honda, our approach includes a portfolio of internal combustion engine and hybrid-electric vehicle technologies as we bridge to an electrified future.”

Analysts say this current deal makes perfect sense.

Michelle Krebs, an executive analyst for Autotrader, told the Detroit Free Press that they are likely to see more these kinds of partnerships as brands try to stay competitive and keep up with emerging technologies.

“She noted that it’s better to “share than go it alone.

Krebs said: “This is very significant news. GM and Honda have been working on a number of projects over the years.

“This takes their relationship to a whole new level.

“What’s notable about Honda is that it has remained fervently independent while others merge or do joint ventures.”

Great upsides for the consumer

If Honda and GM’s two-heads-are-better-than-one thinking works out according to plan, it’s the consumer who might be the big winner after all.

According to report, not only does the combination allow the companies to be more nimble in addressing shifting ever-changing consumer tastes and regulatory requirements, but the vehicle-buying public might also get cars and trucks they’re happier with.

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