WASHINGTON, Sept 12 (Askume) – General Motors Co (GMN) and Hyundai Motor Co (005380.KS) said on Thursday they were discussing key strategic issues including potential joint vehicle development, supply chain issues and clean energy technology, and agreed to explore cooperation.
The US and South Korean automakers said they had signed a non-binding memorandum of understanding to consider how to “leverage complementary scale and strengths to reduce costs and rapidly deliver a broader range of vehicles and technologies to customers.”
Automakers face billions of dollars in capital costs to build new electric vehicles and batteries, secure supply chains and develop advanced technologies such as autonomous vehicles as they face tougher vehicle emissions regulations and fierce competition around the world.
General Motors and Hyundai Motor said the potential cooperation project “focuses on the joint development and production of passenger and commercial vehicles, internal combustion engines and clean energy, electric power and hydrogen technologies.”
two companiesBoth have started to increase electric vehicle productionhave announced aggressive plans.
The two companies will also review potential joint procurements in areas such as battery raw materials and steel, and plan to immediately begin assessing “opportunities and progress toward a binding agreement.”
The framework agreement was signed by Hyundai Motor Group Executive Chairman Eusoon Chung and General Motors Chairman and CEO Mary Barra.
“Our goal is to leverage the scale and creativity of both companies to deliver more competitive vehicles to customers faster and more efficiently,” Barra said.
Hyundai Motor, which comprises flagship Hyundai Motor and its unit Kia Motors (000270.KS) , is the world’s third-largest automaker by sales, while General Motors is the largest U.S. automaker.
Chung said the two automakers will “evaluate opportunities to enhance competitiveness in key markets and vehicle segments by combining expertise and innovative technologies while improving cost efficiency and delivering better value to customers.”
In October 2023, Honda Motor Co (7267.T) and General Motors scrapped plans to jointly develop affordable electric vehicles, just a year after they tried to overtake Tesla Inc (TSLA.O) in sales.
The two car companies agreed in April 2022 to develop a range of low-cost electric vehicles based on a new joint platform, with production expected to begin in millions of vehicles in 2027.
