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 section as we speak. 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 fair proportion of progress points.
A glimmer of hope in inexpensive GM EVs has been the Chevy Equinox, which, though it arrived at a beginning value larger than initially marketed, provides loads of positives, stays one of many model’s most inexpensive new fashions, and will promote effectively.
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. Nevertheless, information shared by GM and Hyundai earlier as we speak paints a unique image—considered one 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 as we speak through which executives from each events signed a Memorandum of Understanding (MoU) to “instantly” start exploring paths for collaboration by means of a “international alliance.”
In response to the automakers, the aim of the MoU is to analyze 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 with the intention to lower prices and produce 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 aim is to unlock the size and creativity of each corporations to ship much more aggressive automobiles to clients quicker and extra effectively.
Along with EV improvement, GM and Hyundai mentioned they may even discover avenues through 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 reinforce competitiveness in key markets and automobile segments, in addition to drive price efficiencies and supply stronger buyer worth by means 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 doable.
Electrek’s take
If it involves fruition, this might be a home-run deal for each side within the automotive trade. As I are likely to level out usually once 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 only appear to get it proper each time. I believe a whole lot of 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 essential on the time of its improvement however served as a hefty funding sooner or later, and it’s paid off tenfold to date.
In contrast to 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 larger prices to shoppers, so GM’s pricing has gone up. A lot of its obtainable fashions are extra premium and priced as such in opposition to automobiles 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 might repair a few of its architectural woes and produce 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, 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.
