G.M. and Hyundai Plan to Work Together on New Vehicles

Business|G.M. and Hyundai Plan to Work Together connected New Vehicles

General Motors and Hyundai said connected Thursday that they would look for areas wherever they could collaborate connected caller vehicles, proviso chains and technologies successful a bid to trim costs and move faster.

The 2 automakers said they aimed to activity together connected soul combustion, electrical and hydrogen-powered vehicles. But they did not supply specifications connected wherever nan associated activity would beryllium done, which executives would oversee nan effort aliases really quickly they would travel up pinch caller models.

“G.M. and Hyundai person complementary strengths and talented teams,” Mary T. Barra, G.M.’s main executive, said successful a statement. “Our extremity is to unlock nan standard and productivity of some companies to present moreover much competitory vehicles to customers faster and much efficiently.”

The companies person signed a nonbinding statement and said they would statesman exploring imaginable areas of practice immediately.

Like different automakers, G.M. and Hyundai person invested tens of billions of dollars to create electrical vehicles that person truthful acold fallen short of nan lofty income goals immoderate executives had set. Consumer enthusiasm for battery-powered models has cooled successful nan past year, mostly connected concerns astir nan precocious prices of electrical models and nan challenges of charging them.

Sales of specified cars and trucks are increasing astatine a humble pace, though mostly astatine a faster gait than for accepted gasoline vehicles. Many manufacturers, including Tesla, person trim prices to spur request and are scrambling to trim costs.

“This business will alteration Hyundai Motor and G.M. to measure opportunities to heighten competitiveness successful cardinal markets and conveyance segments, arsenic good arsenic thrust costs efficiencies and supply stronger customer value,” Hyundai’s group executive chair, Chung Eui-sun, said successful a statement.

G.M. has been losing money connected nan electrical models it makes but has said it expects those vehicles to go profitable by nan extremity of nan year. Ford Motor mislaid $2.5 cardinal connected its electrical conveyance business successful nan first half of this year, and has group up a improvement squad successful California to creation models that are little costly to produce.

Automotive partnerships person had a mixed grounds of success, however. Several years ago, Ford invested successful nan electrical conveyance start-up Rivian, but later decided to waste astir of its shares. Ford besides established a business pinch Volkswagen, but nan companies person reduced their collaboration, and Volkswagen said this twelvemonth that it would activity pinch Rivian, chiefly connected software.

A type of this article appears successful people connected  , Section

B

, Page

6

of nan New York edition

pinch nan headline:

G.M. and Hyundai Plan to Work Together connected New Vehicles and Supply Chains. Order Reprints | Today’s Paper | Subscribe