Auto tie-ups are nothing new, but they have become more frequent and wide-ranging in the age of clean energy and alternate fuel sources, as companies seek to spread out the cost and risk of adopting expensive new technologies.
The latest alignment is between General Motors and Hyundai, which are joining forces to codevelop new passenger and commercial vehicles, including EVs and hydrogen fuel cells. They will also explore ways to save money on the acquisition of raw battery materials and steel, among other crucial supplies.
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.”
“Look for ways to leverage their complementary scale and strengths”
The key word there is “faster,” as EV sales growth appears to be petering out, leading to a lot of skittishness in the industry. A lack of available affordable models and historically high interest rates are sapping some of the enthusiasm from car buyers. And GM and Hyundai are hoping that their combined mettle can help pick things up again.
Where all of this will lead is a little unclear right now. But a relevant example could be the recent collaboration between GM and Honda, in which Honda introduced the electric Prologue SUV built on GM’s Ultium platform — and then that was basically it. The two companies were supposed to release a lineup of affordable EVs but abandoned the plan after determining it would be too difficult.
There’s no mention of “affordable EVs” in GM and Hyundai’s respective announcements — or EVs in particular, aside from a vague reference to “electric [and] hydrogen technologies.” But it’s still early days of this partnership. We’ll have to see where it goes.
