Hyundai Motor and General Motors are close to finalizing a deal to share two electric commercial truck models with the American auto giant, according to a Reuters news report.
According to the same source, GM may supply Hyundai with pickup trucks to be sold under its own brand in North America. Such an arrangement could launch a broader partnership, including the purchase or joint development of computing chips, next-generation batteries, battery materials, engines, and other vehicle components.
General Motors and Hyundai face increasing competition from Chinese electric vehicle manufacturers, prompting them to seek product sharing to reduce production costs and streamline expenses in an effort to outperform the competition with minimal losses.
Partnerships between automakers are nothing new. Such agreements have been made to reduce production costs or target a specific market, as Mercedes and Renault have done.
There are many other examples. But now, the situation is different. Western companies are facing fierce competition from Chinese electric car manufacturers, which have outperformed them all in terms of pricing and the technology they offer customers.
