Memorandum of Understanding to explore future collaboration across key areas along the vehicle value chain.
Carmakers General Motors and Hyundai have signed a Memorandum of Understanding (MoU) to explore strategic collaboration across a wide field along the vehicle value chain. Potential partnerships include the co-development and production of passenger and commercial vehicles, internal combustion engines, and clean-energy technologies. In addition, the two companies will review opportunities for joint sourcing of steel and raw materials for battery production.
The agreement was signed by Hyundai Executive Chairman Euisun Chung and GM CEO Mary Barra. “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,” Barra said in a joint statement.
Hyundai and General Motors are among the world’s largest vehicle producers, third and fifth place by sold vehicles in 2023, respectively. A collaboration between large players in the field would have “a lot of implications for the U.S. EV industry,” according to an automotive engineering professor in an interview with the Korea Herald.
Besides future cooperation, the two carmakers continuously seek to secure new sources of supply, especially to fuel their electric vehicle value chain. Hyundai, for example, has secured the supply of rare earths for itself and its subsidiary Kia from Australian mining company Arafura (we reported). On the other hand, GM has signed an agreement with magnet maker VAC regarding the supply of rare earth magnets.
Photo: PhonlamaiPhoto
