General Motors, the Detroit, Michigan-headquartered American multinational carmaker which had recently lost its automotive industry crown to e-vehicle industry trailblazer Tesla Inc., and the Japanese carmaker Honda Motor Co.
had issued a joint statement late on Thursday revealing their plans to partner up in North American in a bid to develop wide-ranging vehicles such as electric, hybrid and self-driving cars. In point of fact, latest move from GM and Honda comes over the heels of a growing outcry in the automotive industry amid a sharp nosedive in demands for passenger cars, while potential consumers appeared to have locked up their coffers over the narratives of an uncertain outlook regarding the timeframe of the pandemic.
Amid such slandering outlook in global auto market with buyers in China, the world’s largest auto market, zipping up their pockets after having been forced to tap into their savings in order to make ends meet following a sharp downturn in economic activities across the globe, recent approach from GM and Honda to partner up would likely to save billions in research and development for green-energy vehicles, suggested analysts.
GM and Honda to share common platform in e-vehicle development
Notably, General Motor and Honda were quoted saying later on the day that the automotive industry titans had been preparing to share a common platform to develop both combustion engine and electric vehicles.
Nonetheless, the companies would still require a binding agreement to complete their tie-up which could have been subjected to anti-trust probes as well given the carmakers’ strident stance in the global auto market, however, an Associated Press report was quoted one of the sources familiar with the subject-matter as saying that the joint R&D project in effect could save tens of billions of dollars for both of the carmakers.
Meanwhile, as a GM-Honda partnership would reflect a substantial scale of expansion in existing tie-ups between the automakers on developing electrified and autonomous vehicles, fuel cells and connected vehicle technology, GM President Mark Reuss said in a statement shortly after the announcement of the tie-up late on the day, “Overall, we believe this alliance would help both companies realize significant cost savings in the development of our vehicle portfolios. ”