GM and Hyundai to Explore Co-Development and Manufacturing of Vehicles
General Motors and Hyundai Motor Group have signed an agreement to explore future collaboration across key strategic areas. The goal is to reduce capital spending and increase efficiencies by potentially co-developing and producing passenger and commercial vehicles, internal combustion engines, as well as clean-energy, electric, and hydrogen technologies. The nonbinding memorandum of understanding comes at a time when the automotive industry is focusing on capital efficiency after years of investing heavily in electric, autonomous, and software-defined vehicles.
The two companies will also explore opportunities for combined sourcing in areas such as battery raw materials and steel. The agreement, signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra, aims to unlock scale and creativity to deliver more competitive vehicles faster and more efficiently.
Barra and Chung highlighted the complementary strengths of GM and Hyundai, expressing their shared goal of enhancing competitiveness in key markets and driving cost efficiencies. This partnership marks Hyundai’s first such agreement, while GM has been involved in various partnerships in the past, some of which have been successful while others have not met expectations.
One notable collaboration was with Honda Motor involving fuel cells, all-electric vehicles, and autonomous vehicles, with varying degrees of success. A memorandum of understanding between GM and Nikola Corp. in 2020 failed to produce meaningful results due to issues with the startup. In the early 2010s, GM had partnerships with Ford Motor and PSA Peugeot Citroën, now Stellantis, that also did not yield the expected results.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.