GM and Hyundai Motor Company seek alliance, including joint vehicle development

General Motors and Hyundai Motor Company will explore the possibility of collaboration in several areas, the companies announced Thursday. [The companies signed a memorandum of understanding outlining the framework for a potential partnership and will now seek to evaluate opportunities before entering into a binding agreement.

In a joint statement, the two companies said the partnership could enhance competitiveness through increased efficiencies.

Areas to be covered include the development and production of vehicles in both the passenger and commercial vehicle segments, as well as powertrains including gas engines, EVs, and hydrogen technology.

The companies will also evaluate opportunities in steel and battery material procurement, among other areas.

GM recently worked with Honda on a number of areas, including the development and production of the 2024 Honda Prologue and 2024 Acura ZDX electric SUVs. The two companies had also planned to develop an affordable EV platform, but canceled that project last year.

Honda has since turned to Nissan and Mitsubishi to explore possibilities for cooperation, particularly in the areas of vehicle electrification and software development.

Toyota has worked with BMW to jointly develop their respective sports cars, the Supra and Z4, and earlier this month announced a new partnership in the area of fuel cell vehicles.

Many existing automakers are seeking partnerships to fend off competition from new rivals, especially China, which last year surpassed Japan as the world's largest auto exporter.