GM and Hyundai plan to investigate joint ventures in automobile production and cost-cutting measures.

• An agreement has been reached between General Motors and Hyundai Motor to investigate potential collaboration in strategic areas, with the goal of decreasing capital expenditures and enhancing productivity.
• The areas of interest include the production of passenger and commercial vehicles, internal combustion engines, and electric and hydrogen technologies.
• The nonbinding memorandum of understanding, which represents an agreement, has been renewed by the automotive industry after years of prioritizing capital efficiency.

The companies announced on Thursday that they have agreed to explore collaboration in strategic areas to reduce capital spending and increase efficiencies.

The automakers' potential areas of interest include co-development and production of passenger and commercial vehicles, internal combustion engines, and clean-energy, electric and hydrogen technologies, as stated in a joint press release.

The nonbinding memorandum of understanding represents a shift in focus from the automotive industry's previous emphasis on aggressive spending for electric, autonomous, and software-defined vehicles, which have not yet proven profitable.

The automakers also stated that they will evaluate potential joint sourcing in areas such as battery materials, steel, and others.

The framework agreement was signed by Euisun Chung, Executive Chair of Hyundai Motor Group, and Mary Barra, Chair and CEO of GM, according to the companies.

The companies' spokespeople refused to disclose further information about the announcement, including any potential capital investments, anticipated savings, or efficiency improvements.

Barra and Chung echoed Barra's statement that now is a "prime time" for industry collaboration to share in capital spending, with the agreement coming months later.

Barra stated that GM and Hyundai possess complementary strengths and skilled teams. The objective is to harness the scale and creativity of both companies to produce more competitive vehicles for customers at a faster and more efficient pace.

Chung stated that this partnership will allow Hyundai Motor and GM to assess ways to improve competitiveness in crucial markets and vehicle categories, while also reducing costs and enhancing customer value through the use of our combined knowledge and advanced technologies.

Hyundai has reached its first such agreement, while GM has been involved in numerous partnerships or deals, some of which resulted in products, but many others did not meet expectations or were unsuccessful.

GM and Cruise have been involved in several partnerships involving fuel cells, all-electric vehicles, and autonomous vehicles, with varying levels of success.

In 2020, a memorandum of understanding between GM and Nikola Corp. was announced, but despite initial promise, the partnership failed to produce any significant results due to numerous issues with the struggling automotive startup.

In the early 2010s, before Barra became CEO, General Motors had significant partnerships with both PSA Peugeot Citroën and French automaker Renault, which did not yield the expected outcomes.