HYUNDAI and General Motors have signed an agreement to “co-develop new passenger and commercial vehicles, including EVs and hydrogen fuel cells” including buying raw materials.

The two companies have signed a memorandum of understanding to “look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster.”

Both are among the world’s most active car-makers in building hydrogen as a power source.

GM chair and CEO Mary Barra and Hyundai Motor Group executive chair Euisun Chung

It’s also not the first time for joint ventures (JVs) in the field. GM jointly owns a fuel cell production factory with Honda, while Hyundai has said that hydrogen will play a “prominent role” in its effort to go carbon neutral.

Hyundai has its own hydrogen models – including the Nexo SUV – with much of the emphasis on its heavy-duty truck range that could be of interest to GM in the North American market. 

In a statement, they said both companies will “target improved efficiencies and increased competitiveness through collaboration.”They said they will “look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster.”

Potential collaboration projects centre on co-development and production of passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies. 

The two leading global OEMs also will 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 chair Euisun Chung and GM chair and CEO Mary Barra.

Ms 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,” she said.“Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently.”

Mr Chung said: “This partnership will enable Hyundai Motor and GM to evaluate opportunities to enhance competitiveness in key markets and vehicle segments, as well as drive cost efficiencies and provide stronger customer value through our combined expertise and innovative technologies.” 

The parties are also keen to move along. Following the signing of the non-binding memorandum of understanding, assessment of the opportunities and progression towards binding agreements will begin immediately.