G.M. and Hyundai Plan to Work Together on New Vehicles

Original Report: www.nytimes.com(full story)

General Motors and Hyundai announced plans to collaborate on new vehicles, supply chains, and technologies to reduce costs and expedite development. They intend to work together on internal combustion, electric, and hydrogen-powered vehicles, but specifics on locations, leadership, and timelines for new models remain undisclosed. Mary T. Barra, G.M.’s CEO, emphasized the goal of leveraging both companies’ strengths for more competitive vehicle offerings. The partnership was initiated through a nonbinding agreement, with exploration of collaboration starting immediately. Both automakers have made significant investments in electric vehicles, which have not met sales expectations due to high costs and charging concerns. Despite ongoing challenges, electric vehicle sales are growing faster than those of conventional vehicles. Hyundai’s executive chair, Chung Eui-sun, stated that the partnership would seek to improve competitiveness and efficiency. G.M. has faced financial losses on electric vehicles but expects profitability by year’s end. Historical automotive partnerships have shown mixed success, with prior collaborations among various manufacturers like Ford and Volkswagen experiencing challenges and ultimately reducing joint efforts.