Car manufacturers around the word from the past up to now, try to stand on their feet and don’t be washed away by the time and be forgotten. Some of the big automakers have the solution of partnership. Some days ago, such a thing happened to Honda and GM (General Motors). These major companies have plans to have cooperation in the field of new electric Autos and R&D.
It seems that, the Japanese and Americans have come to a conclusion to establish a strategic alliance in North America. Although they will continue to produce vehicles under their own brands, they would share same platforms. (GM announced on previous Thursday).
It was already in April announced that Honda and GM would collaborate in the field of electric cars. But by the new contract, it could be about the combustion engines too. Of course, GM chief believes that the future is electric and there is no room for combustion engines! This American company has already planned for 20 new all-electric cars by 2023.
By the new alliance between these major automakers, the site for research and development would be also expanded. By the close work they also share their innovations and new technologies, specially those are about the electrification. According to the agreement, that is a non-binding one. That means that each company is free to continue to operate freely and according to its own orientations.
As Mark Reuss, President Of General Motors Claims:
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.
Seiji Kuraishi, Honda Motor Co., Ltd Executive Vice President also added:
Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings. 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. In this way, Honda will continue making steady progress in solidifying our existing business by realizing strong products, strong manufacturing capability and a strong business structure.
We shouldn’t look at this new agreement just in the aspect of business. these companies one is famous for Trucks and SUVs and the other for high quality and sedans, could have impact on each other and Couse the birth of a whole new generation of cars. So that effect the consumers too. By the way, it seems hopefully a satisfying deal.