Hyundai And GM To Work Together On Developing New Cars

Hyundai and General Motors (GM) have decided to collaborate on the development of new vehicles, supply chains, and technologies to reduce costs and accelerate progress.

Global automakers are under great pressure to develop new electric vehicles (EVs) and battery technologies in response to global vehicle pollution standards. These R&D activities could cost tens of billions of dollars.

They are also facing an assault of possible competition from Chinese automakers, notably EV manufacturers, who are attempting to export their lower-cost models worldwide to avoid a massive oversupply problem at home.

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Hyundai And GM To Work Together On Developing New Cars

Hyundai of South Korea and General Motors of America (GM) announced on Thursday that they will work together on joint product development, production, and future renewable energy technologies. They intend to collaborate on internal combustion, renewable energy, electric, and hydrogen vehicles.

Hyundai Motor Executive Chair Euisun Chung and General Motors Chair and CEO Mary Barra signed a non-binding framework agreement.

“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 said in a written statement.

According to Reuters, Hyundai Motor, including its affiliate Kia, is the world’s third-biggest automaker by sales, whereas General Motors (GM) is currently America’s largest carmaker, having retaken the title 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,” Chung stated in a news release.

Hyundai And GM To Work Together On Developing New Cars

Carmakers are increasingly forming alliances to gain a competitive advantage in a price-sensitive sector.

Nissan and Renault finalised the parameters of their new alliance last year, with an emphasis on EV development. GM, Honda (HMC), and Cruise (GM’s autonomous driving division) have agreed to establish a driverless ride-hailing company in Japan.

SOURCE | CNN