Hyundai and General Motors sign Memorandum of Understanding to jointly develop and manufacture automobiles, including electric vehicles

Hyundai has announced that it has signed an agreement with General Motors to explore future collaboration in key strategic areas. Through a non-binding memorandum of understanding (MoU), both parties will investigate the possibility of jointly developing and manufacturing passenger and commercial vehicles.

The framework agreement also covers collaboration on internal combustion engines and electric powertrains, the latter including all-electric and hydrogen technologies. In addition, both OEMs will leverage their capabilities to reduce costs and accelerate development times to bring vehicles to market sooner.

The companies are also interested in combining their resources in areas such as steel, battery raw materials and others. In an official statement, Hyundai and GM said that evaluating opportunities and progress toward binding agreements will begin immediately after the signing of the MOU.

Alliances in the automotive sector are not unheard of and are starting to become more common as companies look to gain a better foothold, especially in the electric vehicle (EV) segment that is seeing strong competition from Chinese automakers. Honda and Nissan combine in March this year and has been joined by Mitsubishi in August. Meanwhile, Toyota, Mazda and Subaru expressed their long-term commitment to the internal combustion engine and a multi-pronged approach to achieving carbon neutrality.

GM previously partnered with Honda to jointly develop affordable electric vehicles, but the plan was shelved. has been removed almost a year later ink has been put on paperPerhaps Hyundai is a better fit for the US-based automaker, but only time will tell whether this partnership will be successful.

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