Hyundai, GM agree to collaborate on auto technology development

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Hyundai, GM agree to collaborate on auto technology development

Published: 12 Sep. 2024, 19:00

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Motor Group Executive Chair Euisun Chung, right, shakes hands with General Motors CEO Mary Barra after signing an agreement pledging cooperation in automobile development in New York. [HYUNDAI MOTOR]

Hyundai Motor inked an agreement with General Motors promising cooperation in key auto technologies while also hinting at a possible joint development of vehicles.

Under the nonbinding memorandum of understanding, the two global automakers agreed to collaborate to find ways to reduce costs and ramp up productivity. Specific details of the cooperation have not been disclosed.

But Hyundai said its collaborative projects could potentially result in the co-development and production of passenger and commercial vehicles, internal combustion engines, clean energy, and electric and hydrogen technologies.

The duo will also review ways to integrate the supply chain of raw materials, such as batteries and steel.

The framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM CEO Mary Barra.

"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,” said Chung.

The partnership is meaningful in that it was signed between two of the top five automakers in the world. Hyundai Motor, combined with Kia, was ranked the No. 3 automaker in terms of units sold last year, while GM placed fifth.

The companies' relationship started in 2020 when Hyundai purchased GM's Russian plant in St. Petersburg. After the outbreak of the Russia-Ukraine war, Hyundai in December sold the plant to Russian firm Art-Finance for 10,000 rubles, or $110, with a two-year buyback option.

In 2023, Hyundai again bought GM's Indian plant in Talegaon with a goal of making the country the next manufacturing hub, an alternative to China.

Hyundai's Indian subsidiary is currently preparing a blockbuster $3 billion initial public offering, which is expected to come in October.

It's the first time the two have formed a strategic partnership in automobile development.

BY SARAH CHEA [chea.sarah@joongang.co.kr]