- Now that GM and Hyundai have signed a non-binding agreement to begin cooperating at several levels, the question is what they’ll do together.
- While no concrete plans have yet begun, everything from raw materials to software is on the table.
- Sharing resources on EV development makes sense, but this tie-up could also share costs on developing emissions-compliant combustion engines for the global market.
Two of the largest automobile manufacturers in the world, Hyundai and General Motors, have now signed an agreement to begin working together on raw materials sourcing, supply chain management, and even vehicle design. The announcement obviously highlights the possibilities for developments in clean energy, EVs, and hydrogen power, but also extends to future developments in combustion engine technology.
It’s early days yet, as the memorandum of understanding is non-binding; the agreement is more a first handshake between companies deciding to start working together. Both Hyundai and GM are already in process on their respective battery-electric powertrain rollouts, so don’t expect to suddenly be able to buy an Ioniq 6 rebadged as a Chevy Cavalier.
However, with the sword of Damocles of competition from Chinese automakers like BYD hanging overhead, it’s no surprise that even the big car manufacturers are looking to form partnerships. Even with U.S. and EU regulators looking to protect domestic production with tariffs on Chinese imports, the best way for manufacturers to compete is by optimizing production from raw materials right through to software programming.
General Motors has formed partnerships in the past with several other manufacturers including, most recently, Honda. That teamup was specifically aimed toward building more affordable EV offerings, and it resulted in the Acura ZDX and Honda Prologue, both of which use GM’s Ultium battery technology. However, both of the aforementioned could be seen as Honda working to provide a stopgap while its engineers work to create in-house EV solutions for the future.
Hyundai, by contrast, doesn’t necessarily need GM’s Ultium, as it already has a successful EV rollout in progress. Where synergies between the two companies exist could come at various production levels—for instance, Hyundai produces tens of millions of tons of steel every year and even has its own mines for raw-material extraction.
So while it’s fun to think of a Camaro-shaped sports coupe that drives like an Ioniq 5N, or a Hyundai full-size pickup with Silverado underpinnings, this new partnership is likely to be more about supply chains and software. It’s also possible that Hyundai’s persistence in the field of hydrogen fuel-cell vehicles could dovetail nicely with GM’s experience in fleet sales. Refueling has long been hydrogen’s weak spot, and a fleet of vehicles operating from a central depot solves this problem.
Meantime, Hyundai and GM are just getting to know each other. Both bring various strengths to the table, GM in scale, Hyundai in fast-paced innovation. It’s a smart move for both, especially as the global automotive manufacturing business gets more cutthroat than ever.
Brendan McAleer is a freelance writer and photographer based in North Vancouver, B.C., Canada. He grew up splitting his knuckles on British automobiles, came of age in the golden era of Japanese sport-compact performance, and began writing about cars and people in 2008. His particular interest is the intersection between humanity and machinery, whether it is the racing career of Walter Cronkite or Japanese animator Hayao Miyazaki’s half-century obsession with the Citroën 2CV. He has taught both of his young daughters how to shift a manual transmission and is grateful for the excuse they provide to be perpetually buying Hot Wheels.
Source: Motor - aranddriver.com
