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Hyundai and GM to work together on developing new cars
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Hyundai and General Motors (GM) have agreed to look for ways to work together on developing new vehicles, supply chains and technologies in an effort to cut costs and move more quickly.
Global carmakers are under intense pressure to come up with new electric vehicle (EV) and battery technology because they face vehicle emissions regulations around the world. Those research and development efforts could cost tens of billions of dollars.
They’re also facing an onslaught of potential competition from Chinese automakers, particularly EV producers, trying to export their lower-cost models overseas in order to escape a huge oversupply problem at home.
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South Korea’s Hyundai and America’s GM (GM) said on Thursday they would collaborate on joint product development, manufacturing and future clean energy technologies. They plan to work together on internal combustion, clean-energy, electric and hydrogen vehicles.
The non-binding framework agreement was signed by Hyundai Motor Executive Chair Euisun Chung and GM Chair and CEO Mary Barra.
“Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” Barra said in the statement.
Including its affiliate Kia, Hyundai Motor is the world’s third-largest automaker by sales, according to Reuters, while GM is currently America’s largest carmaker, having retaken that title from Toyota (TM) in 2022.
“This partnership will enable Hyundai Motor and GM to evaluate opportunities to enhance competitiveness in key markets and vehicle segments, as well as drive cost efficiencies and provide stronger customer value,” Chung said in the statement.
Carmakers are increasingly sealing partnerships as a way of becoming more competitive in a cut-throat industry driven by price wars.
Last year, Nissan and Renault finalized the terms of their revamped alliance, which will focus on developing EVs. GM and Honda (HMC), along with Cruise — GM’s autonomous driving subsidiary — have agreed to create a driverless ride-hailing company in Japan.