General Motors and Hyundai examine cooperation

General Motors and the Hyundai Group are exploring a possible cooperation. The two companies announced this at a joint press conference. The potential cooperation is to focus on the joint development and production of passenger and commercial vehicles, combustion engines as well as clean energy, electric and hydrogen technologies. Joint procurement in areas such as battery raw materials, steel and other areas will also be examined.

One goal: reducing costs

The aim is to reduce costs for both companies and make a wider range of vehicles and technologies available to customers more quickly, according to a statement. A framework agreement for the examination of a cooperation was signed. GM CEO Mary Barra is promoting such a collaboration, saying a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation. "GM and Hyundai have complementary strengths and talented teams. Our goal is to unleash the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently", said Barra.

"This partnership will enable Hyundai Motor and GM to evaluate opportunities to improve competitiveness in key markets and vehicle segments, increase cost efficiency and create greater customer value through our combined expertise and innovative technologies," argued Hyundai Motor Group CEO Euisun Chung. When a final decision will be made on a cooperation was initially left open. However, negotiations are to begin immediately.

(mfz)