Source: Hyundai Motor Company

The framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra in New York, US

General Motors and Hyundai Motor Co. have signed a non-binding memorandum of understanding (MOU) to explore future collaboration across key strategic areas as global carmakers chart out strategies to maintain market share and profitability amid the global transition to electric vehicles, the two companies said in a joint announcement on Sept. 12.

The framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra in New York, US.

While the two companies have yet to finalize the definitive contours of this collaboration, they said that they would begin assessing opportunities and move toward the framework of a binding agreement immediately.

According to the joint press note, GM and Hyundai plan to look for ways to leverage their complementary scale and strengths with a focus on reducing costs and bringing a wider range of vehicles and technologies to their customers faster.

To do so, the two companies may evaluate potential collaboration across multiple areas including co-development and production of passenger and commercial vehicles, internal combustion engines (ICEs), clean-energy, and electric and hydrogen technologies, as well as combined sourcing in areas such as battery raw materials and steel, among others.

Barra said a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation.

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

Chung said, “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.”

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