AFSCME 3357-HOF'S BLOG

GM & Honda: Room for a New NUMMI?

The article below from Autoweek.com suggests that Honda may soon have an undercapacity problem - exactly the opposite of GM. Does this create the opportunity for a win-win deal? GM has a plant in Doraville Georgia that it doesn't know what to do with. Honda has a new plant, and growing supplier network, in Alabama, not far away. For a couple decades, GM has been in a joint venture operation with Toyota called NUMMI. The Toyota Matrix and Pontiac Vibe are the most visible product of that pairing. NUMMI is a UAW shop. Perhaps GM can cut a similar deal to the GM+Toyota=NUMMI deal with Honda.

It's not an absurd proposition. Honda and GM Have engaged in cooperative deals before. Izuzu is a GM brand. Honda rebadged Izuzu SUVs in the 90s and sold them as Hondas. Honda and GM have worked together to establish XM radio. GM worked out a purchase exchange agreement regarding engines that resulted in the Honda 3.5 liter V-6 being installed as the optional engine on Saturn Vue SUVs. Honda and General Motors are actively trying to move ahead in fuel cell technology, not just for automotive use but for stationary power generation as well. Pooled efforts might result in new markets for each. The turbine technology that Honda has been working on for its business jet might work well in a hybrid layout for commercial busses etc. GM has vast experience with large hybrids.

Politically, GM really can't afford to lose its presence in Georgia. GM is weak in the south overall, NASCAR not withstanding, and shutting down another southern plant while the "transplants" are increasing production in the south would weaken any sympathy that is left with representatives below the Mason-Dixon line. The UAW has a lot of incentive to be VERY flexible when it comes to a restructured contract. Not only does the UAW want to preserve its current jobs, but it would much like to get a foot in the door at Honda.


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