Hong Kong (TDI): In an effort to reduce costs and accelerate development, Hyundai and General Motors (GM) have decided to explore for opportunities to collaborate on the creation of new automobiles, supply networks, and technology.
Due to global vehicle pollution rules, automakers are under tremendous pressure to develop new technologies for electric vehicles (EVs) and batteries. Tens of billions of dollars could be spent on certain R&D projects.
Furthermore, they have to contend with an array of possible rivals from China, especially EV manufacturers that are attempting to export their more affordable models abroad to get around a severe domestic oversupply issue.
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American company GM (GM) and South Korean company Hyundai said on Thursday that they would work together on future renewable energy technology, manufacturing, and joint product development.
Together, they intend to work on sustainable energy, electric, hydrogen, and internal combustion automobiles.
CEO and chair of Hyundai Motor, Euisun Chung, and CEO and chair of GM, Mary Barra, signed the nonbinding framework agreement.
GM is currently the largest manufacturer in America, having retaken the title from Toyota (TM) in 2022. Hyundai Motor, including its affiliate Kia, is the third-largest automaker in the world by sales.
Besides promoting cost savings and delivering more customer value, this relationship will allow Hyundai Motor and GM to assess potential to improve competitiveness in important markets and car categories, according to Chung’s statement.
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To stay competitive in a fiercely competitive market where price wars are the norm, automakers are forming alliances more frequently.
Nissan and Renault completed the details of their redesigned partnership last year, with an emphasis on EV development. A driverless ride-hailing company will be established in Japan by GM, Honda (HMC), and Cruise, GM’s autonomous driving unit.
