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Key Takeaways
- General Motors and Hyundai are teaming up to reduce costs, get products to consumers faster, and develop new vehicles.
- The carmakers signed a memorandum of understanding to explore collaboration on vehicles, supply chain, and clean-energy technologies.
- GM CEO Mary Barra said the agreement will help “unlock” the scale and strengths of the two firms.
Two of the world’s biggest carmakers are teaming up to find ways to cut expenses, get products to customers faster, and develop new vehicles.
General Motors (GM) and Hyundai on Thursday announced a memorandum of understanding to explore ways collaborate on co-developing vehicles, supply chain, and clean-energy technologies.
‘Complementary Scale and Strengths’
The companies said the partnership will help them “look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster.”
GM CEO Mary Barra said GM and Hyundai “have complementary strengths and talented teams,” and the agreement has the potential to make vehicle development more efficient.
Hyundai Motor Group Executive Chair Euisun Chung added that the deal will allow the two firms “to evaluate opportunities to enhance competitiveness in key markets and vehicle segments, as well as drive cost efficiencies and provide stronger customer value.”
The companies did not provide details on financial terms of the agreement.
General Motors shares were up about 3% in intraday trading Thursday following the news, and have gained more than 28% so far in 2024.
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