Mary Barra, chairman and CEO of General Motors, and Euisun Chung, executive chairman of Hyundai Motor Group, during a signing ceremony of an agreement between the two companies to explore future collaboration in a variety of key strategic areas.
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DETROIT — Automobile Corporation And Hyundai Engine have signed an agreement to explore “future collaboration on key strategic areas” in an effort to reduce capital spending and increase efficiency, the companies announced Thursday.
In a joint press release, they said potential areas of interest for the automakers include co-development and production of passenger and commercial vehicles, internal combustion engines, and clean energy, electric and hydrogen technologies.
The agreement, a non-binding memorandum of understanding, comes as the auto industry refocuses on capital efficiency after years of heavy spending to develop electric, autonomous and software-defined vehicles that have yet to take off. manifest into profitable businesses.
The automakers also said they would “look at combined sourcing opportunities in areas such as battery raw materials, steel and others.”
The companies said the framework agreement was signed by Hyundai Motor Group Executive Chairman Euisun Chung and GM President and CEO Mary Barra.
GM’s Hydrotec fuel cell stack is displayed at the company’s joint venture facility with Honda in Brownstown, Michigan.
Michael Wayland/CNBC
Spokespeople for the companies declined to provide further details about the announcement, including potential capital investments or expected savings or efficiencies.
The deal comes months after Barra said it was now “golden time” for industry cooperation to share capital spending. Both Barra and Chung reiterated those comments in statements Thursday.
“GM and Hyundai have complementary strengths and talented teams. Our goal is to leverage the scale and innovation of both companies to deliver more competitive vehicles to customers faster and more efficiently,” Barra 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 deliver greater value to customers through our combined expertise and advanced technologies,” Chung said.
This is the first such deal for Hyundai, a spokesperson said. GM, meanwhile, has entered into numerous partnerships or agreements. Some have resulted in products, but many others have not worked out or have not achieved as much as initially hoped.
Most notably GM and Honda Engine has entered into a number of partnerships related to fuel cells, all-electric vehicles and autonomous vehicles, including one with Cruise, a majority-owned subsidiary of GM. Success with each type being different.
ONE Memorandum of Understanding published between GM and Nikola Corp. in 2020 failed to produce any meaningful results amid long list of problems with the once-promising auto startup.
In the early 2010s, before Barra became CEO, GM had notable partnerships with Ford Engine and former French automaker PSA Peugeot Citroën, now StellantisThat also did not bring the expected results.
