Hyundai and GM are joining forces to create new car models
Hyundai and General Motors (GM) have announced a collaboration aimed at developing new vehicles, enhancing supply chains, and advancing technologies to reduce costs and accelerate innovation.
As global carmakers face mounting pressure to advance electric vehicle (EV) and battery technologies due to stringent emissions regulations worldwide, research and development expenses could reach tens of billions of dollars. Additionally, they are contending with increasing competition from Chinese automakers, especially EV producers seeking to export their cost-effective models to address a significant domestic oversupply.
Hyundai and GM have agreed to jointly work on product development, manufacturing, and clean energy technologies, including internal combustion, electric, and hydrogen vehicles. The non-binding framework agreement was signed by Hyundai Motor Executive Chair Euisun Chung and GM Chair and CEO Mary Barra.
Barra stated, “Our goal is to harness the scale and creativity of both companies to deliver even more competitive vehicles to customers more quickly and efficiently.” Hyundai Motor, which includes its affiliate Kia, is the world’s third-largest automaker by sales, while GM reclaimed its position as America’s largest carmaker from Toyota in 2022.
Chung added, “This partnership will allow Hyundai Motor and GM to explore opportunities to boost competitiveness in key markets and vehicle segments, drive cost efficiencies, and deliver greater value to customers.”
Automotive partnerships are a common strategy in the industry. For instance, last year, Nissan and Renault finalized their revamped alliance focusing on EV development. Additionally, GM and Honda, along with GM’s autonomous driving subsidiary Cruise, have joined forces to establish a driverless ride-hailing service in Japan.
