Hyundai is entering into an agreement with General Motors which could lead to collaboration on a host of ventures, including vehicles and technology.
In a news release, the two companies said they were looking for ways to leverage costs while adding scale.
Potentially, the two automakers could produce together passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies. They could also combine sources for battery raw materials and steel.
“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,” Hyundai Motor Group Executive Chair Euisun Chung said, in a statement.
The automakers still have to finalize certain legal agreements as part of the collaboration.
“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,” GM Chair and CEO Mary Barra said.
Hyundai and its partner Kia are the second-largest seller of electric vehicles in the U.S. behind Tesla, according to The Wall Street Journal. Kia is not currently part of the partnership discussions with GM, a Hyundai spokesperson told the paper.
Hyundai’s Montgomery plant makes six different models – including traditional internal combustion engine SUVs, electric SUVs, hybrids, rear-wheel drive and two of the luxury Genesis models.
