Hyundai, GM Team Up to Tackle EV Race, Cost Pressures
In a move aimed at bolstering their competitiveness in the rapidly evolving automotive landscape, Hyundai Motor and General Motors (GM) have announced a collaboration to jointly develop new vehicles, explore supply chain synergies, and push the boundaries of future technologies, CNN reports.
The agreement, signed by Hyundai Motor Executive Chair Euisun Chung and GM Chair and CEO Mary Barra, is non-binding but signals a major shift in the companies’ strategies as they face intense pressure from both regulatory and competitive fronts.
The global automotive industry is grappling with increasingly stringent vehicle emissions regulations, leading to massive investments in electric vehicle (EV) and battery technology. This research and development effort could cost carmakers tens of billions of dollars, further compounded by the emergence of aggressive Chinese EV producers seeking to export their cost-effective models globally.
“Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” said Barra in a press release.
The collaboration will focus on a broad range of areas, including internal combustion engine vehicles, clean energy technologies, electric vehicles, and hydrogen vehicles. Hyundai Motor, including its affiliate Kia, is currently the world’s third-largest automaker by sales, while GM reclaimed the title of America’s largest carmaker from Toyota 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,” said Chung.
The move underscores a growing trend within the automotive industry, where partnerships are becoming increasingly common as a means of navigating price wars and achieving greater competitiveness.
Last year, Nissan and Renault solidified their revamped alliance with a focus on EV development. GM and Honda, along with Cruise, GM’s autonomous driving subsidiary, also teamed up to establish a driverless ride-hailing company in Japan.
