General Motors and Honda Motor Co. will jointly develop vehicles in North America

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General Motors and Honda Motor Co. have signed a non-binding memorandum of understanding to team up in North America to share vehicle R&D and engineering costs. Both companies will share common vehicle platforms, including both electrified and internal combustion propulsion systems “that align with the vehicle platforms,” GM said in a Thursday announcement. The combined efforts would effectively give both automakers the ability to “accelerate innovation” and “effectively deploy resources.” The alliance builds upon a previous joint agreement by both companies earlier this year to develop two new electric vehicles for Honda “based on GM’s highly flexible global EV platform powered by Ultium batteries.” Both companies, which formed relations over two decades ago, have recently collaborated on fuel cells, batteries and the Cruise Origin shared autonomous vehicle.

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The auto industry comes under greater pressure to share technology and costs to meet demands for cleaner vehicles. In this case, the savings would run in billions of dollars for each company. Japan’s Toyota Motor Corp has been expanding ties with smaller Japanese automakers such as Mazda Motor Corp and Subaru. Ford Motor Co and German automaker Volkswagen AG have forged a wide-ranging alliance covering electric and commercial vehicles and autonomous driving technology.