• by Tanya Gazdik , September 12, 2024

General Motors and Hyundai announced plans to collaborate on new vehicles, supply chains and technologies in a bid to cut costs and move faster.

“The two automakers said they aimed to work together on internal combustion, electric and hydrogen-powered vehicles,” according to The New York Times. “But they did not provide details on where the joint work would be done, which executives would oversee the effort or how quickly they would come up with new models.” 

The companies have signed a nonbinding agreement via GM CEO Mary Barra and Hyundai executive chair Euisun Chung. 

“GM and Hyundai have complementary strengths and talented teams,” Barra said in a statement. “Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently.”

Although both automakers have invested heavily in modern EV platforms, they will likely 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,” according to Ars Technica. 

The companies declined to provide additional details about the announcement, including potential capital investments or expected savings or efficiency gains.

“The agreement comes months after Barra said now is a ‘prime time’ for industry collaboration to share in capital spending,” per CNBC.  “This is the first such agreement for Hyundai, according to a spokesman. GM, meanwhile, has been part of many partnerships or deals. Some tie-ups have led to products, but many others have not worked out or did not accomplish as much as initially expected.”