Now that General Motors and Hyundai have finalised a non-binding agreement to work together on various levels, the question that needs to be answered is what they will do together. Both the software and the raw materials are being considered despite the fact that no official plans have been made regarding either of these. Although it makes sense to collaborate on EV development, this could also help split the cost of producing combustion engines that meet global emissions standards. Hyundai and General Motors, two of the world’s largest automakers, have agreed to collaborate on supply chain management, product design, and raw material procurement. The announcement discusses both upcoming developments in combustion engine technology and the obvious benefits of clean energy, electric vehicles, and hydrogen power. Due to the fact that the process is still in its preliminary stages, a memorandum of understanding needs to have the force of law behind it. It’s more of a friendly handshake between businesses that want to collaborate. It will soon be possible to purchase an Ioniq 6 rebranded as a Chevy Cavalier. This is because Hyundai and GM are still developing battery-electric powertrains. It is not surprising that major automakers are interested in collaborating with BYD and other Chinese automakers because they are such strong competitors. The United States and the European Union are trying to protect domestic production from Chinese imports by imposing tariffs on imported goods. However, manufacturers can still compete by finding more efficient ways to produce raw materials, software, and everything else. General Motors has collaborated with other automakers in the past, most recently with Honda. This partnership aimed to make electric vehicles (EVs) more affordable. As a result, the Acura ZDX and Honda Prologue were both built with GM’s Ultium battery technology. However, both of these are short-term fixes as Honda’s engineers work on future in-house EV solutions. However, Hyundai already has a successful EV rollout underway, so it does not require GM’s Ultium. There may be ways for the two businesses to collaborate more effectively when producing different quantities of goods. Hyundai, for example, produces tens of millions of tons of steel each year and owns mines where the raw materials are extracted. Imagine a full-size Hyundai pickup based on the Silverado chassis or a sports coupe shaped like a Camaro that drives like an Ioniq 5N. However, the focus of this new partnership is on software and supply chains. Hyundai’s push to produce hydrogen fuel-cell cars may also benefit GM’s experience selling fleets of vehicles. Adding fuel has always been hydrogen’s weak point, but this can be addressed by establishing a central depot from which a fleet of cars operates. At the moment, Hyundai and GM are still getting to know each other. Both are good in their ways. Hyundai makes things quickly, and GM is big. Both sides are smart enough to make this choice, especially since the global car business has become very competitive.
