Hyundai Motor Company and General Motors (GM) are working to reduce production costs and increase efficiency through joint development, production, and integrated material supply.

On the 12th, Hyundai Motor Company signed a memorandum of understanding (MOU) with GM for comprehensive cooperation.

Through this collaboration, the two companies will collaborate on key strategic areas, exploring ways to reduce production costs, increase efficiency, and quickly provide customers with a diverse product line.

Potential areas of cooperation between the two companies include joint development and production of passenger/commercial vehicles, internal combustion engines, green energy, electric and hydrogen technologies.

The two companies will also explore integrated sourcing options for battery raw materials, steel, and other materials.

In addition, the two companies plan to develop joint capabilities based on flexibility and agility.

“This partnership has the potential to make product development more efficient through systematic capital allocation,” said Mary Barra, GM Chairman and CEO. “Building on our complementary strengths and capable organizations, we will leverage scale and creativity to deliver competitive products to customers more efficiently and faster.”

“Through this partnership, Hyundai Motor Company and GM will expand into key global markets and vehicle segments,” said Chung Eui-sun, Chairman of Hyundai Motor Group.“We will be able to explore opportunities to strengthen our competitiveness in each business,” he said. “By leveraging the expertise and innovative technologies of both companies, we will improve efficiency and enhance customer value.”

The two companies plan to develop the scope of their collaboration through a multifaceted review of the contract, taking this business agreement as an opportunity.