GM and Hyundai to ‘immediately’ explore partnerships in EV development and supply chains

General Motors (GM) and Hyundai Motor Group announced the signing of a Memorandum of Understanding to explore potential partnerships across a myriad of automotive tech segments, including joint EV and powertrain development, manufacturing, and supply chain sourcing.

One of the world’s most prominent American automakers has announced a potential landmark partnership with one of the most innovative and promising automakers in the BEV segment today. For years, GM has proclaimed its dedication to going all-electric and has promised several new models in the works.

For quite a while, customers were left to choose between the now lame-duck Chevy Bolt or the super-expensive Hummer EV while they waited for more affordable models. But GM and its sub-brands have finally begun bringing more BEVs to market—but not without GM’s fair share of growth issues.

A glimmer of hope in affordable GM EVs has been the Chevy Equinox, which, although it arrived at a starting price higher than originally advertised, offers plenty of positives, remains one of the brand’s most affordable new models, and should sell well.

Yesterday, we learned that GM would be beginning sales of the Equinox in Korea, presumably taking its affordable EV battle to Hyundai Motor Group’s home turf. However, news shared by GM and Hyundai earlier today paints a different picture—one of (potential) collaboration in EV technology development.

GM, Hyundai sign potential game-changing global alliance

GM and Hyundai held a joint press conference earlier today in which executives from both parties signed a Memorandum of Understanding (MoU) to “immediately” begin exploring paths for collaboration through a “global alliance.”

According to the automakers, the goal of the MoU is to investigate joint product development, manufacturing, and future clean energy technologies, including the co-development of passenger and commercial BEV models and powertrains.

GM and Hyundai will look to capitalize on their respective strengths and scales in order to cut costs and bring more new models to the public faster. Per GM CEO and chair Mary Barra:

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.

In addition to EV development, GM and Hyundai said they will also explore avenues in which they can combine supply chain sources of things like battery raw materials, steel, and other components. Hyundai Motor Group executive chair, Euisun Chung, also spoke:

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.

Per GM and Hyundai, the process of assessing potential opportunities for collaboration and their respective progression toward binding agreements will begin as soon as possible.

Electrek’s take

If it comes to fruition, this could be a home-run deal for both sides in the automotive industry. As I tend to point out often when I cover Hyundai Group on Electrek, there is arguably no other OEM doing more right now in terms of consistent innovation and quality EV deliveries.

They just seem to get it right every time. I think a lot of this early success can be traced back to Hyundai, beginning with 800V platforms years ago, beginning with the IONIQ 5 and Kia EV6. That platform technology was arguably not necessary at the time of its development but served as a hefty investment in the future, and it’s paid off tenfold so far.

Unlike Hyundai Motor Group, GM has struggled with its Ultium platform in terms of efficiency and has had to load up its current BEV models with huge battery packs to deliver a competitive range. Larger batteries equal higher costs to consumers, so GM’s pricing has gone up. Many of its available models are more premium and priced as such against vehicles from Rivian, Lucid, and Mercedes. I would personally take a Rivian over any GM electric truck, and much of the market has agreed.

With help from Hyundai, GM could fix some of its architectural woes and bring down supply chain costs, thus delivering more of the affordable BEV models it has been promising for five years now. On the other side of the table, Hyundai, which remains a much smaller OEM than GM on a global scale, could gain access to the American automaker’s manufacturing and distribution prowess and cash in on some of GM’s fame.

If this MoU solidifies into genuine partnerships, it would be a win-win for everyone. I’m excited to see what these two can create together.