General Motors and Hyundai approved an agreement to collaborate on product development and manufacturing, including clean-energy technologies. Though they didn’t mention China, the partnership is aimed at making each more competitive in a market increasingly dominated by the Asian giant, whose sway others are trying to curtail with tariffs and more domestic production and sourcing of manufacturing materials.
The Detroit and South Korean automakers signed a memorandum of understanding for the undertakings to “target improved efficiencies and increased competitiveness,” said a GM press release.
Next steps include exploration of opportunities and establishment of binding agreements.
The announcement didn’t include specifics about the collaborations except to say that projects will focus on passenger and commercial vehicles, internal combustion engines and clean-energy technology, including electric and hydrogen, signaling that neither plans to go all-electric anytime soon.
Many automakers have scaled back earlier ambitious time targets for all-electric lineups after seeing that mass adoption is further out than they had expected.
For electric vehicles, the automakers will seek ways to source battery materials together, and will also co-source steel and other raw manufacturing materials.
GM CEO Mary Barra said in the release that the company hopes the relationship will create efficiencies for both through increased scale and “disciplined capital allocation.”
