General Motors and Hyundai Motor Company have signed an agreement to explore future collaboration across key multiple strategic areas. As part of this agreement, both brands will jointly look for ways to leverage their strengths and scale in pursuit for cost reduction and bring a wider range of vehicles and customers faster.
- Both brands will explore joint vehicle development
- Will also see opportunities for joint powertrain development
- Plans to work on clean energy will be explored too
GM Hyundai JV: what’s the plan?
Both brands will explore potential collaboration projects on joint development and production of passenger and commercial vehicles, including internal combustion engine, electric and hydrogen powered vehicles. Both brands will also review opportunities for combined sourcing in areas such as battery raw materials, steel and other areas.
The framework agreement was signed by Hyundai Motor Group executive chairman Euisun Chung and GM Chair and CEO Mary Barra. Barra said 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 unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” said Barra.
Following the signing of the non-binding Memorandum of Understanding, assessment of opportunities and progression towards binding agreements will begin immediately.
General Motors in India: a backgorund
In its last innings, GM started building cars in India in 1996 at its Halol plant in Gujarat. The brand also had a second plant at Talegon that started operations a little later. In 2017, GM decided to consolidate its India operations and stopped manufacturing vehicles at Halol, making Talegon its only plant in India for domestic and exports. The Halol plant, subsequently was taken over by MG Motor India. GM exited India in December 2020 and shut down its Talegon plant where it was building the Chevrolet Beat Essentia sedan for export markets.
The Talegaon plant was to be taken over by Great Wall motors but the plan hit a speed breaker due to geopolitical tensions between India and China. Later on, Hyundai India went ahead and took over the erstwhile GM Talegon pant where the Korean brand will start building cars from next year. The first model to roll out from the new Hyundai Talegon plant is likely to be the next-gen Hyundai Venue SUV.
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