Basic 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 growth, manufacturing, and provide chain sourcing.
One of many world’s most distinguished American automakers has introduced a possible landmark partnership with one of the vital modern 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, prospects had been left to decide on between the now lame-duck Chevy Bolt or the super-expensive Hummer EV whereas they waited for extra reasonably priced 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 reasonably priced GM EVs has been the Chevy Equinox, which, though it arrived at a beginning value greater than initially marketed, gives loads of positives, stays one of many model’s most reasonably priced new fashions, and may promote effectively.
Yesterday, we discovered that GM could be starting gross sales of the Equinox in Korea, presumably taking its reasonably priced EV battle to Hyundai Motor Group’s house turf. Nonetheless, information shared by GM and Hyundai earlier at this time paints a special image—considered one of (potential) collaboration in EV expertise growth.
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 response to the automakers, the purpose of the MoU is to research joint product growth, 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 so as to minimize prices and produce extra new fashions to the general public sooner. Per GM CEO and chair Mary Barra:
GM and Hyundai have complementary strengths and proficient groups. Our purpose is to unlock the dimensions and creativity of each corporations to ship much more aggressive autos to prospects sooner and extra effectively.
Along with EV growth, 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 govt chair, Euisun Chung, additionally spoke:
This partnership will allow Hyundai Motor and GM to guage alternatives to boost competitiveness in key markets and automobile segments, in addition to drive price efficiencies and supply stronger buyer worth by way of our mixed experience and modern 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 potential.
Electrek’s take
If it involves fruition, this might be a home-run deal for either side within the automotive trade. As I are likely to level out usually after I cowl Hyundai Group on Electrek, there may be arguably no different OEM doing extra proper now by way of constant innovation and high quality EV deliveries.
They only appear to get it proper each time. I believe plenty of this early success might be traced again to Hyundai, starting with 800V platforms years in the past, starting with the IONIQ 5 and Kia EV6. That platform expertise was arguably not needed on the time of its growth however served as a hefty funding sooner or later, and it’s paid off tenfold to date.
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. Lots of its accessible fashions are extra premium and priced as such towards autos from Rivian, Lucid, and Mercedes. I’d personally take a Rivian over any GM electrical truck, and far of the market has agreed.
With assist from Hyundai, GM might repair a few of its architectural woes and produce down provide chain prices, thus delivering extra of the reasonably priced 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 worldwide scale, might 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 could be a win-win for everybody. I’m excited to see what these two can create collectively.
