Normal Motors (GM) and Hyundai Motor Group introduced the signing of a Memorandum of Understanding to discover potential partnerships throughout a myriad of automotive tech segments, together with joint EV and powertrain improvement, manufacturing, and provide chain sourcing.
One of many world’s most outstanding American automakers has introduced a possible landmark partnership with one of the crucial revolutionary and promising automakers within the BEV phase at this time. For years, GM has proclaimed its dedication to going all-electric and has promised a number of new fashions within the works.
For fairly some time, clients have been left to decide on between the now lame-duck Chevy Bolt or the super-expensive Hummer EV whereas they waited for extra inexpensive mannequins. However GM and its sub-brands have lastly begun bringing extra BEVs to market—however not with out GM’s justifiable share of development points.
A glimmer of hope in inexpensive GM EVs has been the Chevy Equinox, which, though it arrived at a beginning value greater than initially marketed, provides loads of positives, stays one of many model’s most inexpensive new fashions, and may promote nicely.
Yesterday, we discovered that GM can be starting gross sales of the Equinox in Korea, presumably taking its inexpensive EV battle to Hyundai Motor Group’s residence turf. Nonetheless, information shared by GM and Hyundai earlier at this time paints a unique image—one in every of (potential) collaboration in EV know-how improvement.
GM, Hyundai signal potential game-changing international alliance
GM and Hyundai held a joint press convention earlier at this time during which executives from each events signed a Memorandum of Understanding (MoU) to “instantly” start exploring paths for collaboration by way of a “international alliance.”
In keeping with the automakers, the purpose of the MoU is to research joint product improvement, manufacturing, and future clear power applied sciences, together with the co-development of passenger and industrial BEV fashions and powertrains.
GM and Hyundai will look to capitalize on their respective strengths and scales to be able to lower prices and convey extra new fashions to the general public quicker. Per GM CEO and chair Mary Barra:
GM and Hyundai have complementary strengths and gifted groups. Our purpose is to unlock the size and creativity of each firms to ship much more aggressive autos to clients quicker and extra effectively.
Along with EV improvement, GM and Hyundai stated they may even discover avenues during which they will mix provide chain sources of issues like battery uncooked supplies, metal, and different parts. Hyundai Motor Group government chair, Euisun Chung, additionally spoke:
This partnership will allow Hyundai Motor and GM to judge alternatives to reinforce competitiveness in key markets and car segments, in addition to drive price efficiencies and supply stronger buyer worth by way of our mixed experience and revolutionary applied sciences.
Per GM and Hyundai, the method of assessing potential alternatives for collaboration and their respective development towards binding agreements will start as quickly as attainable.
Electrek’s take
If it involves fruition, this might be a home-run deal for each side within the automotive business. As I are likely to level out typically after I cowl Hyundai Group on Electrek, there’s arguably no different OEM doing extra proper now by way of constant innovation and high quality EV deliveries.
They simply appear to get it proper each time. I believe numerous this early success may be traced again to Hyundai, starting with 800V platforms years in the past, starting with the IONIQ 5 and Kia EV6. That platform know-how was arguably not mandatory on the time of its improvement however served as a hefty funding sooner or later, and it’s paid off tenfold thus far.
Not like Hyundai Motor Group, GM has struggled with its Ultium platform by way of effectivity and has needed to load up its present BEV fashions with large battery packs to ship a aggressive vary. Bigger batteries equal greater prices to customers, so GM’s pricing has gone up. A lot of its accessible fashions are extra premium and priced as such towards autos from Rivian, Lucid, and Mercedes. I might personally take a Rivian over any GM electrical truck, and far of the market has agreed.
With assist from Hyundai, GM may repair a few of its architectural woes and convey down provide chain prices, thus delivering extra of the inexpensive BEV fashions it has been promising for 5 years now. On the opposite facet of the desk, Hyundai, which stays a a lot smaller OEM than GM on a world scale, may achieve entry to the American automaker’s manufacturing and distribution prowess and money in on a few of GM’s fame.
If this MoU solidifies into real partnerships, it will be a win-win for everybody. I’m excited to see what these two can create collectively.
