General Motors Chairman and CEO Mary Barra and Hyundai Motor Group Executive Chairman Euisun Chung signed an agreement between the two companies to explore future collaboration in key strategic areas.
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Detroit- General Motors and modern car The two companies announced on Thursday that they had reached an agreement to explore “future collaboration across key strategic areas” to reduce capital expenditures and increase efficiencies.
Potential areas of interest include joint development and production of passenger and commercial vehicles, internal combustion engines, and clean energy, electricity and hydrogen technologies, the two carmakers said in a joint press release.
The agreement, a non-binding memorandum of understanding, comes as the auto industry refocuses on capital efficiency after years of heavy investment in developing electric, autonomous and software-defined vehicles that have yet to turn into profitable businesses.
The two automakers also said they would “review opportunities for joint procurement in battery raw materials, steel and other areas.”
The framework agreement was signed by Hyundai Motor Group Executive Chairman Euisun Chung and General Motors Chairman and CEO Mary Barra, the companies said.
General Motors’ Hydrotec fuel cell power cube is on display at the company’s joint venture with Honda in Brownstown, Michigan.
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Spokespersons for the companies declined to provide further details about the announcement, including potential capital investments or expected savings or efficiency gains.
A few months ago, Barra said now was a “golden time” for industry to work together to share capital spending. Both Barra and Chung echoed those comments in statements Thursday.
“GM and Hyundai have complementary strengths and talented teams,” said Barra. “Our goal is to unleash the scale and creativity of both companies to deliver more competitive vehicles to customers faster and more efficiently.” “
“This partnership will enable Hyundai Motor and General Motors to evaluate opportunities to enhance competitiveness in key markets and vehicle segments, improve cost efficiencies and deliver stronger customer engagement through our comprehensive expertise and innovative technologies,” said Chung. value.
A spokesman said it was Hyundai’s first such agreement. Meanwhile, GM has been involved in a number of partnerships or deals. Some collaborations have resulted in products, but many others have not yet been successful or have not achieved the results originally intended.
Most notably, General Motors and honda cars Participated in multiple partnerships involving fuel cells, all-electric vehicles and autonomous vehicles, the latter with Cruise, a subsidiary of General Motors Holdings. Everyone’s level of success varies.
A memorandum of understanding announced by General Motors and Nikola in 2020 failed to produce any meaningful results because of a series of problems at the once promising automotive startup.
In the early 2010s, before Barra became CEO, GM and Ford Motor Company and former French automaker PSA Peugeot Citroën, now Strantiswhich also did not achieve the results they expected.
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