Hyundai and General Motors join forces to revolutionize future cars

If a few words can describe what happened to the automotive world in 2024, it would be alliances and partnerships.

It seems like every car company is pulling together. Last month, a new partnership between Nissan, Mitsubishi and Honda was created amid criticism from a former executive.

Related: BMW and Toyota Make a Risky Bet on a Defective Product

Toyota is a case study in partnerships and alliances. In May, Toyota, Mazda and Subaru teamed up to save gas-burning engines and renewed a partnership with Subaru for future electric vehicle development.

In addition, Toyota is teaming up with BMW on a zero-emission fuel vehicle that is seen as an alternative to electric vehicles.

However, a new partnership sees two major automakers collaborating on future vehicles.

Mary Barra, Chairman and Chief Executive Officer of General Motors and Euisun Chung, Executive Chairman of Hyundai Motor Group, during the signing of an agreement between the two companies to explore future collaboration in key strategic areas.

Hyundai

Hyundai and GM’s new alliance

In a statement released on September 12, General Motors (GM) and Hyundai (HYMTF) announced that the two automakers have signed a non-binding “memorandum of understanding” that will see them collaborate on new vehicles made using more efficient supply chains and shared technologies to reduce development costs and time.

While there are few details on how the collaboration will work, the pair said they will work on future passenger cars and commercial vehicles powered by internal combustion engines, electric vehicles and hydrogen energy.

In a statement, GM CEO Mary Barra said the collaboration “has the potential to make vehicle development more efficient, driving greater scale and supporting disciplined capital allocation.”

“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,” said Barra.

More business with electric vehicles:

• Waymo is finding a new way to bring chaos to quiet city streets
• Gavin Newsom’s ‘EV mandate’ is threatened by the US Supreme Court
• The new BMW EV smart app is a privacy nightmare

Hyundai and GM noted that the partnership will allow the two to share resources in critical materials such as raw materials for EV batteries, steel and other areas needed to build cars.

“This partnership will enable Hyundai Motor and GM to assess opportunities to improve competitiveness in key markets and vehicle segments, as well as create cost efficiencies and deliver stronger customer value through our combined expertise and innovative technologies,” he said. Chung said.

The two noted that after signing their non-binding agreement, Hyundai and GM will immediately begin exploring possible areas of cooperation that will be consolidated in a future binding agreement.

The Hyundai Ioniq 5 N electric vehicle destined for shipment to a port near the company’s Ulsan factory in Ulsan, South Korea.

Bloomberg/Getty Images

A new path to an electric future

The partnership between GM and Hyundai is not entirely one-sided, as the two already have an advanced level of expertise represented by their current offerings.

Although both GM and Hyundai have separately announced in previous statements that they are rethinking EV development in favor of hybrid technology, the duo already offer many electric vehicles in their current lineups.

The namesake brand’s Ioniq series of vehicles highlights Hyundai’s offerings. The latest version, the updated 2025 Hyundai Ioniq 5, features a Tesla-rivaling electric range in an attractive package and can be charged at Tesla Superchargers.

Likewise, General Motors also offers similar electric vehicles, but it has an advantage over Hyundai. The batteries behind the automaker’s Ultium platform are manufactured in the United States, assuming the cars are eligible for the $7,500 IRA tax credit. Additionally, the firm is in discussions with CATL regarding advanced battery technology.

Related: Hyundai’s latest EV is a threat breathing down Tesla’s neck

But as the EV slowdown becomes apparent and sales of hybrid-electric vehicles take priority, Hyundai can share technology it sees as “a key bridge to full electrification:” electric extended range vehicles (EREVs).

These new vehicles incorporate electric motors, a battery pack and a small combustion engine that serves as a power generator. The Combo allows for both petrol and traditional electric vehicle charging, but offers a range of over 560 miles (900 kilometres), reducing its reliance on the already strained charging network and away from the dangers of the infamous ‘charge pigs’ .

In an earlier statement to Korea JoongAng Daily, a Hyundai executive said that automakers are currently facing “suffering” that can be solved by providing a diverse range of electrified vehicles.

“Global car drivers will enter a period of suffering for at least two to three years starting in the second half of this year,” the official told the South Korean publication. “Hybrids and EREVs are our weapons to fight this battle.”

Hyundai Motor (HYMTF) Shares were down 1.46% from the opening bell at $61.59 at last check. General Motors (GM) rose 2.56% to $45.80 at last check.

Related: Veteran fund manager sees world of pain coming for stocks