General Motors and
Hyundai Motor Company have signed an agreement to collaborate across key strategic areas. The two companies will look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to market faster.
Potential collaboration projects centre on co-development and production of passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies. The two leading global OEMs will also review opportunities for combined sourcing in areas such as battery raw materials, steel and other areas.
The framework agreement was signed by Hyundai Motor Group executive chair Euisun Chung and GM chair and CEO Mary Barra, who said a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation.
She added: “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.”
Hyundai and GM’s flexibility and agility will allow both companies to explore the development of their shared capabilities. Mr Chung said: “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.”
Following the signing of the non-binding Memorandum of Understanding (MoU), assessment of opportunities and progression towards binding agreements will begin immediately.