General Motors and Honda are going to be sharing more than just GM's Ultium batteries going forward, as the two automakers announced this morning that they intend to form a strategic alliance in North America. Under the terms of the alliance, the two automakers will jointly develop future vehicle platforms and the electric and internal-combustion powertrains to go with them, with the intent to cut costs and invest more heavily in future technologies. This announcement builds on a long-standing relationship between GM and Honda. At that announcement, in April , Honda emphasized that its products will retain their own character, saying it that "The exteriors and interiors of the new EVs will be exclusively designed by Honda.
CASE STUDY: HONDA
(PDF) CASE STUDY: HONDA | Fauziah Bibi - aboutsomethingaround.com
What are Toyota and Honda doing right? To this end, many experts agree that American firms, like their Japanese rivals, should build supplier keiretsu: networks of vendors that learn, improve, and prosper in sync with their parent companies. Some U. As a result, relations between U. The Japanese supplier-partnering model is alive and well—in North America as well as Japan. During the past ten years, automakers Toyota and Honda have struck successful partnerships with some of the same suppliers that are at odds with the Big Three and created effective keiretsu across Canada, the United States, and Mexico. So how do Toyota and Honda do it?
Honda, General Motors to Form Strategic Alliance in North America
End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. Point 4 in W.