General Motors Company (GM.US) joins forces with Hyundai Motor to explore the new blue ocean of electric vehicles and Clean Energy Fuels Corp. technology.

General Motors Company (GM.US) and Hyundai Motor Company announced on Thursday that they have agreed to explore future cooperation in key strategic areas, including potential joint vehicle development, supply chain optimization, and Clean Energy Fuels Corp. technology. The two companies, representing American and South Korean car manufacturers, have signed a non-binding memorandum of understanding aimed at studying how to "leverage their complementary scales and strengths to reduce costs and deliver a wider range of vehicles and technologies to customers faster." Faced with strict automotive emissions regulations and global competition, car manufacturers need to invest large amounts of capital to produce new electric vehicles and batteries, ensure the stability of the supply chain, and develop advanced technologies such as autonomous driving. General Motors Company and Hyundai Motor state that the potential collaboration will "focus on joint development and production of passenger and commercial vehicles, internal combustion engines, as well as Clean Energy Fuels Corp., electric and hydrogen technology." Both companies have announced plans to increase production of electric vehicles. They will also review potential joint procurement in areas such as battery materials and steel, and plan to immediately begin evaluating "opportunities and progress in reaching binding agreements." The framework agreement was signed by Euisun Chung, Executive Chairman of Hyundai Motor Group, and Mary Barra, Chairman and CEO of General Motors Company. Barra stated, "Our goal is to fully leverage the scale and creativity of both companies to deliver more competitive vehicles to customers faster and more efficiently." Hyundai, including its flagship brand Hyundai and subsidiary Kia, is the world's third largest car manufacturer by sales volume, while General Motors Company is the largest car manufacturer in the United States. Chung stated that the two car manufacturers will "evaluate opportunities to enhance competitiveness in key markets and automotive fields, and improve cost efficiency and provide higher customer value through comprehensive expertise and innovative technology." It is worth noting that in October 2023, Honda Motor Co., Ltd. Sponsored ADR and General Motors Company abandoned their plans for joint development of affordable electric vehicles. The previous year, the two companies agreed to invest $5 billion in cooperation in an attempt to outsell Tesla, Inc. (TSLA.US). The two car companies agreed in April 2022 to develop a range of lower-priced electric vehicles based on a new joint platform, with the possibility of producing millions of cars starting in 2027.