GM and Hyundai to explore cooperating on vehicles, supply chain and clean-energy technology

By Ciara Linnane

Move is aimed at cutting costs and bring new technology to market faster

General Motors Co. (GM) and Hyundai Motor Co. (KR:005380) said Thursday they have signed a memorandum of understanding to explore collaboration on vehicles, supply chain and clean-energy technologies in a move aimed at cutting costs and bringing new technology to market faster.

GM's stock was up 4.2% in afternoon trade.

Projects under consideration include co-developing and producing passenger and commercial vehicles, internal combustion engines and clean energy, and electric and hydrogen technologies, the companies said in a statement.

They will also explore opportunities for combined sourcing in areas such as battery raw materials and steel, among others.

"GM and Hyundai have complementary strengths and talented teams," GM Chief Executive Mary Barra said in prepared remarks. "Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently."

The news comes at a time when car makers are struggling to persuade consumers to fully embrace their electric vehicles, and are slowing the rollout in favor of hybrids or ICE vehicles. The pushback on EVs is partly due to their still high prices and a perceived shortage of charging stations, among other factors.

See also: Ally Financial shares plunge as lender says consumers are struggling to pay back car loans

Last month, GM confirmed layoffs in its software and services division, describing a Wall Street Journal report that more than 1,000 employees would be laid off as "accurate."

The report said the layoffs would include around 600 employees at GM's Detroit-area headquarters.

GM's stock has gained 30% in the year to date, while the S&P 500 has gained 17%.

-Ciara Linnane

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09-12-24 1402ET

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