General Motors (GM) and Hyundai have entered into a framework agreement to explore potential collaborations aimed at driving down costs and accelerating the development of new vehicles, supply chains, and technologies.
Global automakers are facing mounting pressure to innovate in electric vehicle (EV) and battery technology due to increasingly stringent emissions regulations worldwide. These research and development efforts represent a substantial investment, potentially costing tens of billions of dollars. Simultaneously, they are confronted with growing competition from Chinese automakers, particularly EV manufacturers, seeking to export their lower-cost models to address oversupply issues in their domestic market.
On Thursday, Hyundai Motor and GM announced their intention to collaborate on joint product development, manufacturing processes, and future clean energy technologies, encompassing internal combustion, clean-energy, electric, and hydrogen vehicles. The non-binding agreement was formalized with signatures from 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 stated.
Hyundai Motor, including its affiliate Kia, holds the position of the world’s third-largest automaker by sales, according to Reuters, while GM currently leads the American market, having regained the 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 remarked.
The automotive industry is witnessing a surge in collaborative partnerships as companies seek to establish a competitive edge in a highly competitive environment marked by price wars. Last year, Nissan and Renault finalized the terms of their revamped alliance, focusing on the development of EVs. Additionally, GM, Honda (HMC), and GM’s autonomous driving subsidiary, Cruise, have reached an agreement to establish a driverless ride-hailing company in Japan.
