General Motors, Honda are partnering for product development in North America

Automakers General Motors Co. and Honda announced they have signed a deal to explore sharing vehicle underpinnings and propulsion systems in North America.

In a Sept. 3 statement, the companies said planning discussions on jointly-designed vehicles will start immediately and include vehicles powered by both electricity and internal combustion engines, with engineering work to begin early next year.

The two firms also said that they’ll also co-operate on purchasing, research, and connected services.

“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources,” GM President Mark Reuss said in the statement. “Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio.”

The alliance would be governed by a joint committee of senior executives from both companies, the statement also said.

The partnership would build on previous collaborations in electrified vehicles and technologies, enabling both companies to explore sharing vehicle platforms and propulsion systems. It 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.