Over the past few years, we’ve seen more and more rival automakers team up and collaborate on various projects – a trend that started with Ford and Volkswagen. Those two companies have teamed up to create a host of new products in the years since they forged a partnership agreement, some of which are merely rebadged or restyled to fit the mold of each. Now, two other automakers that are rivals of each other and Ford are teaming up on a new joint-venture, too – General Motors and Hyundai.
GM and Hyundai have officially signed a non-binding Memorandum of Understanding agreement with the intentions of exploring future collaboration across key strategic areas, as well as leveraging their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster. The two companies are aiming to collaborate on the co-development and production of both retail and commercial vehicles, as well as internal combustion engines, hydrogen-powered vehicles, and EVs.
In the EV realm, GM and Hyundai will also explore possible ways to combine resources in terms of obtaining battery raw materials and steel, among other materials, all with a goal of speeding up vehicle development and making that process more efficient by leveraging economies of scale and capital allocation.
“GM and Hyundai have complementary strengths and talented teams,” said GM Chair and CEO Mary Barra. “Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently.” “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,” added Hyundai Motor Group Executive Chair Euisun Chung.”
Both GM and Hyundai have scaled back their respective EV plans in recent months amid slower-than-expected demand growth, and GM is also planning on laying off around 1,000 white collar workers. As for Ford, CEO Jim Farley recently admitted that the company may explore additional EV partnerships as it aims to drive down costs, too.
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Jim only mentions EV partnerships but this one between GM and Hyundai is for all types of propulsion. Get the feeling that he’s out of touch (if you haven’t already)?