United Against the Tide: Hyundai and GM Join Forces to Take on China’s Automotive Surge

Hyundai Motor Company ⁣has decided to join​ forces with General Motors (GM) of the United States to jointly respond to the rapidly changing global car market environment.

Hyundai Motor Company announced on the 12th that ​it recently signed a business agreement (MOU) for comprehensive ⁢cooperation with GM at ‍’Genesis House ⁤New York’ in the United States. The two companies decided to cooperate in key strategic areas in the future and seek ways to ⁢reduce production costs, increase efficiency, and‌ quickly provide diverse product ⁣lines to ⁣customers.

Areas⁤ of potential collaboration⁢ between the two companies are reported ‍to include joint ⁢development and production of passenger ‌and commercial⁣ vehicles, internal combustion engines, environmentally friendly ‌energy, and electric and hydrogen technologies. At the end of last year, Hyundai Motor Company and GM were 3rd ⁤and 5th, respectively, in global sales.

The cooperation between the two companies is ⁣interpreted as a joint response to ⁤the wave of⁤ attacks by Chinese electric vehicle companies, including BYD, which is increasing​ its market share ‍on the global stage beyond the domestic market. It also has the nature of a check on⁣ companies like Tesla, which are moving forward towards future mobility, focusing on the ‌autonomous driving market.

The ⁢two companies also decided⁢ to review ⁣integrated procurement plans for⁤ electric vehicle battery raw materials, steel, and other materials. In this area too, China has an overwhelming ⁣relative advantage in terms of price competitiveness thanks to its vertical integration system based on a robust ⁢supply chain.

In the global‌ automobile market, due to the electric vehicle flange (temporary stagnation in demand), different electrification speeds ⁤by company, temperature differences in ⁢environmentally friendly policies by country, and trade barriers between⁢ continents, even Volkswagen, the second largest company in the world, ⁢has decided to close plants and reduce workforce. We are experiencing a tectonic shift as far as we can‌ reveal it.

Toyota, ⁤the‍ world’s No.1 manufacturer, is also joining the ranks of joint ventures to reduce costs and realize economies of ⁣scale, including jumping into⁣ joint vehicle software development with⁣ leading Japanese automakers ⁢such as Honda​ and Nissan. Hyundai Motor Company ⁤and GM intend to use this business agreement as an opportunity to increase their dominance in the North American market and to further respond more flexibly and nimbly to the changing global market environment.

Leading up to this agreement, the two companies⁣ are said to have been discussing a wide range of collaboration ⁣topics over the past few months. It was decided to refine the details of the collaboration further through a multilateral review⁤ to conclude the main contract.

Chung Eui-sun,⁣ Chairman of Hyundai Motor ‌Group,‌ said, “Hyundai Motors ‍and GM will expand ⁣cooperation to strengthen⁢ the competitiveness of all vehicle models and ⁣increase customer value in major global markets ⁤based on the expertise and ‍innovative technology of both companies.”

Mary Barra, Chairman and CEO ⁤of GM, said, “This agreement between the two companies will⁤ allow us to make ‌products more efficiently through structured capital allocation.” He continued, “Based on our complementary strengths and capable organizational capabilities, we⁢ will ‌use scale​ and creativity to deliver ​competitive products to our customers more efficiently and quickly.”