2024 seems to be the year of partnerships in the automotive sector as more companies unite. The collaboration between Hyundai and General Motors is a relatively unexpected alliance. The two companies signed a memorandum to explore the possibility of jointly developing and manufacturing vehicles.
If the partnership bears fruit, Hyundai and General Motors will work together on internal combustion engine vehicles as well as electric vehicles. The collaboration could include both passenger and commercial vehicles. Additionally, the framework agreement mentions the possibility of directing efforts towards hydrogen technology. The companies are also interested in integrating their resources, such as steel and raw battery materials.
After signing the papers, discussions between the two companies began “immediately”. The goal is to provide “more competitive vehicles to customers faster and more efficiently,” according to General Motors CEO Mary Barra. She stated that allocating capital more disciplinedly would allow the two automotive giants to reduce expenses through more efficient investment.
This will benefit both companies in lowering development and production costs while reducing the time required to design new cars. This will enable Hyundai and General Motors to be more competitive in a tough industry where Chinese automakers pose a real threat, especially in the electric vehicle sector.
Nearly a year ago, General Motors and Honda canceled plans to jointly develop cheaper electric vehicles. The original plan was to launch the first models in 2027. Perhaps Hyundai can fill the gap left by Honda's departure, but it is too early to know for sure.
Speaking of partnerships, Honda and Nissan agreed in mid-March to negotiate working together on electric vehicles and software. At the beginning of August, Mitsubishi confirmed it would join the newly formed alliance. Elsewhere, Toyota, Mazda, and Subaru held a joint conference a few months ago to express their long-term commitment to internal combustion engines.
