Electric Vehicle | Hyundai and GM to Collaborate on EVs, Supply Chain

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Electric Vehicle | Hyundai and GM to Collaborate on EVs, Supply Chain

Date：2024-09-13

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Keyword tags： Electric Vehicle North Amercia

Hyundai Motor and General Motors announced on September 12th that they have signed a memorandum of understanding (MOU) to explore collaboration in the fields of automotive, supply chain, and clean energy technology. The two companies aim to "leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster."

The potential collaboration projects will focus on the co-development and production of passenger and commercial vehicles, internal combustion engines, and clean energy, electric, and hydrogen technologies. The two companies will also review opportunities for combined sourcing in areas such as battery raw materials, steel, and others.

The framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra.

Barra stated that the partnership between the two companies has the potential to enhance vehicle development efficiency by driving greater scale and supporting disciplined capital allocation. "Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently," said Barra.

Approximately two weeks prior to this MOU, GM finalized a joint venture with South Korea's Samsung SDI, confirming a $3.5 billion investment to build an electric vehicle battery plant in northern Indiana. Additionally, GM has two joint venture battery plants with South Korea's LGES in Ohio and Tennessee.

In April 2022, GM had reached an agreement with Honda to jointly invest $5 billion in developing affordable electric vehicles, with the aim of surpassing Tesla in EV sales. However, the collaboration did not go smoothly, and in October 2023, the partnership was canceled.

Industry insiders believe that the collaboration between Hyundai and GM could provide a new model for developing new vehicles, potentially reducing costs through cooperation in raw materials, engineering, and manufacturing.

Statistics show that in the first half of this year, Hyundai Motor Group, including Hyundai, Kia, and Genesis brands, sold nearly 60,000 electric vehicles in the U.S. market, achieving a market share of 10%, surpassing Ford (7.4%) and General Motors (6.3%).

In the first half of this year, Hyundai Motor sold 2,061,883 vehicles globally, a decrease of 0.9% compared to the same period last year. In the U.S., Hyundai brand sold 400,000 vehicles, a year-on-year increase of 1.2%. Particularly in the second quarter, Hyundai Motor sold 215,000 vehicles in the U.S., a 2.2% increase compared to the same period last year. The U.S. remains a key market for Hyundai Motor to achieve growth in vehicle sales, with SUVs accounting for three-quarters of its retail sales.

GM's global vehicle sales in the first half of the year were 2.78 million, a decrease of 6.3% year-on-year; in the U.S. market, vehicle sales were 1.29 million, a decrease of 0.4% year-on-year. GM sells a variety of cars, SUVs, pickups, and plans to launch several new electric vehicles this year.

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