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|GM Group and Honda Agree to Cross-Supply Engine Arrangement
-- First Step Toward Future Cooperation
|Tokyo, December 21, 1999 --- Honda Motor Co., Ltd. and General Motors Corp. (GM) today announced plans for a power train cross-supply arrangement as the first step in a new relationship that may lead to future cooperation in other areas.
Honda will supply GM with advanced V-6 Ultra Low Emission Vehicle (ULEV) engines and automatic transmissions. Similarly, Isuzu Motors Limited, a GM group company, will supply diesel engines to Honda for sale principally in Europe. Specific terms and details of each engine agreement are to be determined.
GM and Honda also will discuss collaboration on future technological and business opportunities of mutual benefit. Potential opportunities will include recycling in Europe and local parts procurement in different regions around the world.
The agreement includes no equity stake by either company in the other and each will continue independent technology development activities.
"GM has a well-earned reputation for technological and industry leadership. These discussions are a first step in exploring areas of mutual interest that will benefit our customers in the future," said Hiroyuki Yoshino, president and CEO of Honda Motor Co., Ltd. "Honda is firmly committed to an independent path. This relationship will strengthen our ability to maintain this course."
G. Richard Wagoner, Jr., GM president and chief operating officer, said the new relationship reflects GM's aggressive strategy to utilize the best global opportunities to bring innovative products to market fast. "We have tremendous respect for Honda's technical heritage," he said. "Together we can strengthen our abilities to develop future technologies."
General Motors Corp. is the world's largest vehicle manufacturer. GM designs, manufactures and markets cars, trucks, engines, transmissions and locomotives worldwide. GM produces 8.6 million engines and 7.4 million transmissions annually. GM vehicles are sold in nearly 190 countries and the company has manufacturing operations in more than 50 countries, employing about 391,000 people worldwide.
Honda designs, manufactures and markets automobiles, motorcycles and power products worldwide. Honda is the largest engine maker in the world, producing more than 10 million engines annually for its three product lines, including sales of engines to other manufacturers. Honda also builds products in more than 100 manufacturing plants in 33 countries, employing more than 125,000 associates globally.