Sept. 3 (UPI) -- General Motors and Honda signed an agreement Thursday to create a North American alliance that will help produce both electric and gasoline automobiles.
The auto companies said co-development planning discussions would start immediately with engineering work starting next year.
GM and Honda have worked together on various collaborations for more than 20 years, including the development of fuel cells, batteries and the Cruise Origin shared autonomous vehicle. They agreed in April to develop two all-new electric vehicles for Honda based on GM's global EV platform powered by Ultium batteries.
By sharing research, development and engineering costs, the automakers said they hope the alliance will free up money for future projects.
"Given our strong track record of collaboration, the companies would realize significant synergies in the development of today's vehicle portfolio," GM President Mark Reuss said in a statement.
"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," Seiji Kuraishi, Honda executive vice president, said.
"This is very significant news," Michelle Krebs, executive analyst for Autotrader in Detroit, said. "This takes their relationship to a whole new level."Sign up for our daily Top News Newsletter