The post-pandemic car alliance

Before the pandemic broke out, the global automotive industry was facing unusual changes. Many producers were not making it. They pushed every initiative that came their way, from electrification to self-driving cars.

Ironically, the almost total isolation of production has also pushed the automotive giants into crisis, as well as motivated the industry to deal with issues it was avoiding before the pandemic.

In early September, "General Motors" and "Honda" announced that they will form an alliance, expanding the decades-long cooperation that had intensified in recent years, writes KOHA. The makers had co-invested in Cruise, GM's self-driving startup, which is now worth about $20 billion and has pledged to create two new electric vehicles using GM's new battery technology. "Ultium".

The peculiarity of this alliance is not the fact of its existence. It is the "memorandum of understanding" that underlines the North American alliance.

Honda has been selling and manufacturing cars in the United States for several decades. GM, America's number one selling car manufacturer, has been in business for over a century. The car market in North America, including the US and Canada, is the most competitive market in the world.

But he has been stuck with distribution in the market lately. GM leads with less than 20 percent of new car sales. "Honda" has a little more than 15 percent. The percentages almost never change, and in the long run, by the 50s, GM had lost significantly from the time it dominated with 50 percent of the market.