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
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
09-12-24 1402ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks