New York CNN  — 

General Motors and Honda are teaming up to make cars together.

The two companies announced an agreement that will entail the companies sharing basic vehicle designs to be sold under their respective brands. With this new alliance, GM (GM) and Honda (HMC) will work together to develop a range of electric and petroleum-powered vehicles, but it will also allow for “cooperation in purchasing, research and development and connected service,” Honda (HMC) said in a press release Thursday.

This means the car companies will use the same machinery and physical structures for their various models.

The Honda and GM electric car alliance isn’t the first of its kind. In 2019, Toyota and Subaru, followed by Ford and Volkswagen, announced that they were teaming up on self-driving and electric cars.

The alliance between Honda and GM builds on an announcement from April, when GM said it had signed an agreement to develop the basic underpinnings of two electric vehicles for Honda, using GM’s in-house “Ultium” battery technology. Under that agreement, Honda will still be creating the exterior and interior designs of the cars that could result.

Honda’s stock is down 9.5% from this time last year and GM’s stock is down nearly 15% from this time last year.