CHICAGO, Sept. 3 (Xinhua) -- U.S. General Motors Co. and Honda Motor Co. Ltd of Japan have signed a memorandum of understanding toward establishing a strategic alliance in North America, the Detroit News reported on Thursday.
Building on previous collaborations in electrified vehicles and technologies, the partnership would enable both companies to explore sharing vehicle platforms and propulsion systems, and includes a range of each company's vehicles as well as cooperation in purchasing, research and development, potential manufacturing efficiencies and connected services that could save both companies costs as they develop and deploy new technologies.
Development planning discussions between the U.S. automaker and Japanese automaker will begin immediately with engineering work starting in early 2021.
"This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources," GM President Mark Reuss said in a statement.
"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," Seiji Kuraishi, Honda executive vice president, said in a statement.
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