General Motors (GM), the leading automotive company in the U.S., and Hyundai Motor Company are embarking on comprehensive technical cooperation, including vehicles, fuel, and materials. GM, known for its world-class technology in the SUV and commercial vehicle sectors, and Hyundai, which has competitive strength in electric vehicles (EV), are making strategic moves to dominate the future mobility market.

Hyundai Motor Group announced on the 12th that Chairman Euisun Chung met with GM Chairperson and CEO Mary Barra at the Genesis House in New York and signed a ‘Memorandum of Understanding (MOU)’ for comprehensive cooperation. Hyundai and GM have agreed to collaborate on the joint development and production of passenger and commercial vehicles, internal combustion engines, eco-friendly energy, as well as electric and hydrogen technologies. Both companies are also exploring the possibility of jointly procuring essential EV battery materials, steel, and other raw materials.

Chairman Chung stated, “This partnership provides Hyundai and GM with opportunities to enhance competitiveness in key global markets and vehicle segments. By leveraging both companies' expertise and innovative technologies, we will improve efficiency and increase customer value.” Chairperson Barra echoed this sentiment, saying, “The partnership between the two companies has the potential to make product development more efficient through streamlined capital allocation. With complementary strengths and capable organizations, we can utilize scale and creativity to deliver competitive products to customers more quickly and efficiently.”

Alongside this MOU, Hyundai and GM plan to identify projects for collaboration. The surprising announcement of such a comprehensive cooperation plan is seen as a bold move, reflecting the changing landscape of the global automotive industry. The automotive media outlet Motor1.com highlighted that “the collaboration between the two sides was an unexpected event.”

Based on first-half sales figures this year, Hyundai Motor Group ranked 3rd globally with 3.62 million units sold, while GM ranked 6th with 2.78 million units.

Historically, internal combustion engine technology has been dominated by German automakers, and American companies have excelled in the SUV market. However, Hyundai Motor Group has been rapidly advancing in the future mobility industry, primarily represented by EVs. Hyundai and Kia's market share in the U.S. mid-size SUV segment exceeds 20%, and their EVs rank second, trailing only Tesla.

The collaboration vision presented by the two companies includes the joint development of internal combustion engine technology, EVs, and hydrogen technology, as well as shared procurement of batteries and steel. The industry predicts that the partnership between Hyundai and GM could turn them into a ‘superpower’ in the mobility market.

Hyundai excels in the U.S. market with compact and mid-size SUVs like the Tucson and Santa Fe, while GM holds strong in the large SUV and pickup truck segments with brands like Chevrolet, GMC, and Cadillac, which lead in models like the Tahoe, Escalade, and pickups. The collaboration could also mean that Hyundai will push ahead with the development of large SUVs and pickup trucks through its partnership with GM.

For GM, the collaboration may strengthen its relatively weak EV segment. Hyundai, thanks to the success of its Ioniq 5, is recognized as Tesla’s only major competitor in the U.S. small EV market. On the other hand, GM, which has shown strength in the pickup truck market, faces increasing competition as Tesla’s Cybertruck enters the scene.

However, there are challenges the two companies will need to overcome. Several global automakers, such as Toyota and BMW, BMW and Honda, and Ford and Volkswagen, have entered into partnerships for joint development of technology, but few have succeeded. To avoid the pitfalls faced by others, Hyundai and GM are committed to identifying specific projects for full-scale collaboration.

By Hongyong Park, Reporter

<Hongyong Park>