According to a report by Reuters on September 12, General Motors and Hyundai Motor have announced a partnership, agreeing to collaborate on key strategic areas in the future, including potential vehicle development, supply chain management, and clean energy technologies.
Hyundai Motor Group Chairman Euisun Chung and General Motors Chairman and CEO Mary Barra have signed a non-binding memorandum of understanding (MoU) to explore ways to "leverage the complementary scale and strengths of both companies to reduce costs and provide a broader range of vehicles and technologies to customers more quickly."
General Motors and Hyundai stated that potential collaboration projects would focus on the "joint development and production of passenger and commercial vehicles, internal combustion engines, and clean energy technologies, including electric and hydrogen power."
Both companies have announced ambitious plans to ramp up electric vehicle production. They will also explore potential joint procurement in areas such as battery raw materials and steel, with an immediate plan to assess the timing for reaching a binding agreement.
Mary Barra commented, "The goal of General Motors and Hyundai is to unlock the potential scale and creativity of both companies, delivering more competitive vehicles to customers more quickly and efficiently."
Euisun Chung also noted that General Motors and Hyundai will "evaluate opportunities to enhance competitiveness in key global markets and sectors, leveraging our combined expertise and innovative technologies to drive cost efficiency and deliver greater customer value."
By sales volume, Hyundai Motor Group, including its core company Hyundai Motor and subsidiary Kia, is the third-largest automaker globally, while General Motors is the largest automaker in the United States.
Currently, global automakers are facing billions of dollars in capital costs to produce new electric vehicles and batteries, secure supply chains, and develop advanced technologies like autonomous vehicles. This comes as they face stringent vehicle emissions regulations and fierce competition within the global automotive industry.
