gavriil

GM, Honda Partnership: Firing on All Cylinders
December 20, 2002


Motor Trend
General Motors, the world's number one carmaker, is to take supply of engines and automatic transmissions from Honda, the number two Japanese vehicle manufacturer. Around 50,000 models produced by GM's Saturn subsidiary will be fitted with Honda-made engines in an attempt to produce cars with lower emissions. Saturn models, with their off beat, caring image, are a good choice for the new engines.

Carmakers in the US are preparing to meet stringent emissions laws laid down by the state of California. The state's regulations set a limit for a manufacturer's range of vehicles as a whole. Therefore a range of vehicles featuring a high proportion of SUV's - which traditionally emit high levels of CO2 - needs to be balanced by smaller, more frugal models with lower emissions.

As a result, US consumers are beginning to be offered cars with diesel engines. Indeed, Honda is supplied with 1.7 liter diesel engines from a GM affiliate, Isuzu, to be fitted in its compact Civic model. That contract will run until October 2005, with plans to sell 15,000 units a year.

At one time, Honda led the field in hi-tech, high performance engines with its hugely successful foray into Formula One. In the consumer market, technologies such as variable-valve timing, dubbed VTEC, have won Honda applause from the industry and consumers alike for producing a blend of performance and economy.

With the Yen still weak compared to the dollar, the supply deal might also reduce costs for GM, whilst Honda will benefit from the increased business. Equally importantly, GM's decision to turn to Honda for a supply of engines looks like a confident choice given the Japanese firm's success in developing and producing petrol power plants. While Honda capitalizes on one of its core strengths, GM gains higher quality and lower emissions at a competitive price

shaHn78

scalbert

That makes complete sense particularly for the Saturn line. Have the smoothness of a Honda I4 with the Customer Service from Saturn...

For a entry level vehicle the choice would be nice.

blackmagiCL_S

I heard about this a while ago except at that point it was probably just GM requesting the trannies or signing the deal. I have always looked down on Saturn...since my Civic days when the SC1 (?) looked fast but was...not. Any company that doesn't negotiate on price when they are selling plastic cars rubs me the wrong way. They will go up a notch or two with a Honda parts but I feel like Honda is catering to a "lower" company.

ruvz

Good luck GM!! And better luck to the Saturn customer service team...

TheThirdMan

wait if honda is #2 Jap manufactuer, then whos #1 nissan????

Edub-TL

Toyota??

randomwalk101

Toyota/Lexus is #1. I should have gone with the Lexus route....definately my next car.....especially with this tranny issues....which seems like GM is going to find out REAL soon

typeR

in all that i didnt read anything about trannys ,just engines which i had heard along while back from TOV..but the twist was ..i thought it was GM to supply honda with trannys in exchange for engines...im wondering if that part of the deal didnt already happen concidering the tranny quality...j/k really i heard GM's known for bullet proof autos?

just re read the first line...oops...but still i heard engines for trannys

danny25

I'm sure GM has done extensive research on the trannies they're gonna buy, just like any customer making a big purchase. And I doubt GM would be buying trannies with problems.

IWannanS

What? You dont like the fact that you dont have to negotiate? I have never understood why car dealers dont just compete for my business instead of making me run around and jump through hoops to buy their product.

It just pisses me off that I have to work to buy their product.

NOVAwhiteTypeS

nice, may be honda can uses trannies from the auto camaro's, vettes, and other high powered auto's making them bullet proof.

Saturn w/ vtec

gavriil

Toyota is #1.

russianDude

I wish our CL's transmission had the same quality as Toyota's transmissions.... they are like bullet proof...

KavexTrax

one man's trash is another man's treasure?

Btw, a switch to diesel would lead to sulfur emissions, but a lesser evil than CO2 emissions?

ql218

I think I read in a different deal, Honda is supplying GM (Saturn) with the 3.5 engines in the Odyssey and MDX to power the little SUV (VUE). I think Honda will detune the egine quite a bit so it doesn't clobber the CRV. Correct me if I'm wrong.

Water-S

okay here's the deal(my dad works at the Anna Engine Plant which makes the motors for Honda)
when they(GM and Honda) were first working on a contract Honda didn't want to sell them engines because they were afraid it would ruin their reputation of a good quality car. well Honda as you know has a SUPER clean emmissions and I guess California and EPA has been on GM about cleaning up the emmissions on their cars and trucks. so Honda asked a UNGODLY amount for the motor/transmission(Honda did this thinking GM would reject the offer) GM needed a clean motor so bad they told their people working on the contract give them what they want. they orginally order 100,000 motors/transmissions on contract.

well since then the GM employees(which is union ) threw a fit about them "getting screwed out of work" so the Union big shots threw a fit to the big shots in GM and GM cut the order in half to 50,000. personally (this is my thoughts) I think Honda won't build a engine for them because the union guys will piss and moan about it too bad.

yeah honda got hosed over on the deal because they built a new assembly line because from what i heard from dad GM needed these motors fairly fast. and they build this new assembly line and they drop half the orders. I'm sure GM had to pay something to get out of the 100,000 motor contract in order to get it cut in half

Rock Dog

The deal is for Honda ULEV V6 engines and tranmissions (the numbers have been anywhere from 50K to 100K. While Honda will get badly needed diesel engines from GM, by way of the Isuzu division, most likely for use in Europe. Honda also gets On-Star components as part of the deal (that's how it showed up in Acuras so fast.) GM is not "purchasing" the engines and trannys from Honda. It's a technology swap, if you will. This deal has been in the works for about 9 months. Both sides needed each other, it's not just GM.

Honda manufactures about 2.2 million vehicles a year. But over 10 million gasoline engines a year. They are always looking for buyers. They certainly don't need to increase production for a measily 50,000 pieces or so. It's a drop in the bucket to them.