- Hyundai and GM have signed a non-binding agreement to explore collaboration opportunities.
- The automakers may initiate joint development of new vehicles, powertrains, and technologies.
- The aim is to cut R&D costs and shorten development times, boosting competitiveness.
A new day, a new potential partnership between automakers, in the pursuit of reducing costs and increasing competitiveness. Hyundai and GM signed a Memorandum of Understanding (MoU) to explore collaboration opportunities on future vehicles, supply chain improvements, and clean-energy technologies.
The non-binding framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra. The next step is for both parties to discuss various opportunities and work towards “binding agreements.” These discussions will begin “immediately,” highlighting the urgency of the matter.
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Among the potential areas of collaboration between Hyundai and GM are future passenger and commercial vehicles, as well as internal combustion, electric, and hydrogen powertrains. The two automotive groups will also consider combined sourcing in battery raw materials, steel and other areas, aiming to benefit from economies of scale.
According to the joint announcement, Hyundai and GM aim to “improve efficiencies” and “increase competitiveness.” Collaborating in key strategic areas will help reduce R&D costs and shorten development times for future products. If successful, this partnership could enable the automakers to offer a broader range of vehicles to their customers more quickly than before.
Mary Barra, GM Chairman and CEO, stated: “GM and Hyundai have complementary strengths and talented teams. Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently.”
On the Korean group’s behalf, Euisun Chung, Hyundai Motor Group Executive Chairman, commented: “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 through our combined expertise and innovative technologies.”
Collaborate Or Loose
The news comes one year after GM and Honda canceled their $5 billion deal for joint development of affordable electric SUVs. GM may have found a suitable alternative in Hyundai, with which it is exploring a broader range of collaboration opportunities.
Nowadays, most automakers are members in some sort of partnership or alliance, with similar cost-cutting and efficiency goals. Earlier this year, Honda joined forces with Nissan and Mitsubishi, while Toyota recently partnered with Subaru, and Mazda.
If you add the VW Group and the 14-brand Stellantis portfolio into the equation, you can see that this is not a time to be a lone wolf in the automotive industry. After all, the Chinese brands have already started their invasion to global markets, making it more difficult for well-established automakers to stay competitive.
