General Motors (GM) and Honda (HMC) are teaming up to form an automotive alliance in North America to sell vehicles under each’s brands.

Through the agreement, the automakers will collaborate on purchasing, research, development, and connected services throughout a variety of segments throughout North America. The companies will also share common vehicle platforms, including electrified models and traditional engine-powered systems.

The companies are also looking to create “substantial” cost efficiencies by sharing vehicle platforms, propulsion systems, joint purchasing, potential manufacturing, and other efforts as they look to advance their next-generation technologies.

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

GM and Honda said the discussions between the automakers will begin immediately with engineering work slated to start in early 2021.

This is not the first time that GM and Honda have partnered as the companies signed an agreement to work together in April to develop two new electric vehicles under the Japanese automaker’s brand but using the Detroit-based GM’s global EV platform.

“Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings,” Seiji Kuraishi, executive vice president at Honda, said in a statement.

“Combining the strengths of each company, and by carefully determining what we will do on our own and what we will do in collaboration, we will strive to build a win-win relationship to create new value for our customers. In this way, Honda will continue making steady progress in solidifying our existing business by realizing strong products, strong manufacturing capability, and a strong business structure,” Kuraishi added.

Shares of GM were trading at $30.46 as of 10:47 a.m. EDT, down 50 cents of 1.61% while shares of Honda were trading at $25.50, up 3 cents of 0.12%.

General Motors auto assembly workers lower an engine onto the chassis for Chevrolet Silverados and GMC Sierra pickup trucks at the Flint Assembly in Flint, Michigan
General Motors auto assembly workers lower an engine onto the chassis for Chevrolet Silverados and GMC Sierra pickup trucks at the Flint Assembly in Flint, Michigan January 24, 2011. REUTERS
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