How far will GM and Honda take their alliance?

The combined challenges of a global pandemic, its subsequent economic downturn and CASE (connected, autonomous, shared and electric) mobility are putting a serious strain on automaker finances. Margins for many players have been too narrow for comfort, and the pinch is only getting stronger. Even before COVID-19 appeared on the scene, former FCA Chief Executive Sergio Marchionne was urging the merits of scale-boosting alliances with his 'Confessions of a capital junkie' pitch to investors. Marchionne argued that the industry has never been able to earn its cost of capital over a cycle and that consolidation was the only answer.