Hyundai Motor Group and GM to Jointly Develop Platforms for Five Vehicle Types
Synergy Through Division of Development Roles Based on Each Company’s Strengths
Hyundai Motor Group and General Motors (GM) have unveiled a concrete roadmap for their collaborative alliance. The two companies will jointly develop platforms for five vehicle types, leveraging their respective strengths and technological expertise, and are clarifying their complementary cooperation through a division of roles. GM, with its strength in mid- and large-size pickup trucks, will lead the development of midsize pickups, while Hyundai, which is competitive in small cars and electric vehicles, will take charge of small car development.
On August 7, Hyundai Motor Group and GM announced that they will jointly develop four types of vehicles?midsize pickups, small pickups, small passenger cars, and small sport utility vehicles (SUVs)?as well as one electric commercial van.
GM will lead the development of the midsize truck platform, while Hyundai will take the lead in developing platforms for small cars and electric commercial vans. The vehicle platforms will be developed together, but exterior and interior designs will differ by brand, with each company manufacturing and selling the vehicles at their own plants.
The four models?midsize and small pickups, small passenger cars, and small SUVs?will be developed on platforms capable of accommodating both internal combustion engines and hybrid systems. This means that a GM midsize pickup truck equipped with Hyundai's hybrid system could be launched in the Latin American market. Previously, when the memorandum of understanding was signed in September last year, the possibility of sharing production bases or rebadging (releasing existing vehicles under a different brand logo) was discussed. However, in the latest discussions, the focus has been placed solely on joint platform development.
Hyundai Motor Group and GM aim to enhance product competitiveness by jointly developing platforms, which is the most costly part of vehicle development. By sharing superior parts supply chains and pursuing joint procurement of parts and materials, they will also secure cost competitiveness.
The two companies are promoting a sourcing project for materials and transport/logistics cooperation in the Americas and are reviewing collaboration in areas such as raw materials, parts, and complex systems. They have also agreed to explore the possibility of working together in the field of low-carbon steel for sustainable manufacturing practices.
Jose Munoz, President and CEO of Hyundai Motor, stated, "Based on our collaboration with GM in the North and South American markets, we will be able to deliver beautiful design, high quality, safety-oriented vehicles, and advanced technology to customers more efficiently."
Shilpan Amin, Executive Vice President of Global Purchasing and Supply Chain at GM, added, "This collaboration will allow us to offer customers a wider range of choices more quickly and at lower cost," and said, "The jointly developed vehicles are a case study in how both companies can leverage their complementary strengths and scale synergy."
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