GM, Hyundai team up to slash costs of new vehicles and clean tech
Enlarge / GM CEO Mary Barra (left) and Hyundai executive chair Euisun Chung (right) have agreed to have their companies collaborate.
Hyundai Motor Group
Two of the world’s largest automakers are becoming closer friends, we learned this morning. Hyundai Motor Group and General Motors, which together sold 13.5 million cars last year, have decided to try and collaborate in a range of areas in the coming years, including vehicle design, technology development, and even supply chain sourcing.
GM is one of the world’s oldest and most established automakers and has a long legacy of clever engineering solutions, albeit one often hamstrung by corporate decision-making.
Meanwhile, GM was just a year from its 60th birthday when HMG got going, and while the Korean automaker was not taken particularly seriously in the US as a budget brand at launch, over the last 15 years its products have been class-leading, especially its electric vehicles.
With the agreement signed, the two companies say they will immediately start looking for opportunities to work together, including jointly developing and producing new passenger and commercial vehicles, new internal combustion engines, and also new electric powertrains, whether those be battery- or hydrogen-powered.
Although both automakers have invested heavily in modern EV platforms—E-GMP in the case of HMG, Ultium in the case of GM—they will want to start on the next generation before long.
Supply chains, particularly for raw materials like steel or the minerals that go into battery cells are another potential avenue for collaboration.
“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,” said HMG executive chair Euisun Chung.
“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,” said GM chair and CEO Mary Barra.
Let’s hope that GM has learned from the last time it partnered closely with another automaker.