GM and Hyundai Collaborate on Automotive and Clean-Energy Technologies

General Motors (GM) and Hyundai have announced a new partnership aimed at enhancing their competitiveness and reducing the costs and risks associated with developing new technologies. The two automakers have signed a non-binding agreement to explore joint opportunities and work towards binding agreements.

According to GM CEO Mary Barra, the goal is to "unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently."

The collaboration will focus on several key areas, including the co-development and production of passenger and commercial vehicles, internal combustion engines, and electric and hydrogen clean energy technologies. Additionally, the companies will look into supply chain efficiencies, such as combined sourcing of battery raw materials and steel, to reduce costs.

While it may take some time to see the results of this partnership, it is a strategic move for both automakers, especially given the uncertainties in the electric vehicle (EV) market. For example, Ford's EV division is projected to lose around $5 billion this year.

This partnership is part of a broader trend of collaboration in the automotive industry. In June, Volkswagen and Rivian announced a partnership, with Volkswagen investing $3 billion into the EV company and an additional $2 billion into a joint venture.