General Motors Chairman and CEO Mary Barra and Hyundai Motor Group CEO Euisun Chung during the signing of an agreement to explore further cooperation between the two companies in key strategic areas.
Courtesy photo
DETROIT – General Motors and Hyundai Motor the companies announced Thursday that they have reached an agreement to explore “further collaboration in key strategic areas” to reduce capital expenditures and improve efficiency.
In a joint press release, potential areas of interest for automakers include the joint development and production of passenger and commercial vehicles, internal combustion engines, clean energy, electric and hydrogen technologies.
The non-binding memorandum of understanding comes as the auto industry renews its focus on capital efficiency after years of aggressive spending to develop electric, autonomous and software-defined vehicles that have yet to become profitable businesses.
The automakers also said they would “consider joint sourcing opportunities in areas such as battery raw materials, steel and other areas.”
The framework agreement was signed by Hyundai Motor Group Executive Chairman Euisun Chung and GM Chairman and CEO Mary Barra, the companies said.
The GM Hydrotec fuel cell power cube on display at the company’s joint venture with Honda in Brownstown, Michigan.
Michael Wayland/CNBC
Spokesmen for the companies declined to provide further details on the announcement, including potential capital investments or expected savings or efficiency gains.
The deal comes months after Barra said now was a “prime time” for industry collaboration to share capital costs. Both Barra and Chung echoed those comments in statements Thursday.
“GM and Hyundai have complementary strengths and talented teams. Our goal is to unlock the scale and creativity of both companies to deliver competitive vehicles to customers faster and more efficiently,” said Barra.
“This partnership will enable Hyundai Motor and GM to assess opportunities to improve competitiveness in key markets and automotive segments, including increasing cost efficiencies and delivering stronger customer value through our combined expertise and innovative technologies,” Chung said.
According to the spokesperson, this is the first such agreement for Hyundai. GM, meanwhile, has been part of many partnerships or deals. Some combinations have led to products, but many have not worked or achieved as well as initially hoped.
Most importantly, GM and Honda Motors have been involved in several partnerships related to fuel cells, fully electric vehicles and autonomous vehicles, the latest with Cruise, a majority-owned subsidiary of GM. Everyone’s success is different.
A memorandum of understanding announced in 2020 between GM and Nikola Corp. has not yielded any meaningful results amid a series of problems with the once-promising auto startup.
In the early 2010s, before Barra became CEO, there were significant partnerships with GM Ford Motor and former French carmaker PSA Peugeot Citroen, now Stellantiswhich did not yield their expected results.
