If all goes according to plan, South Korean Hyundai will be able to build more cars faster than before. So will American General Motors.
South Korean Hyundai and General Motors (GM) have signed a non-binding agreement. The agreement means that the brands will 'look at opportunities to collaborate'.
If you strip away all the lingo of business life, it means, according to Carscoop, that the two groups will be able to build a wider range of cars faster than before.
The partners state this in a press release .
The non-binding agreement was signed by GM CEO Mary Barra and Hyundai CEO Euisun Chung.
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The next step for the parties is to look at which cars they can possibly share. Among the potential are new passenger cars and vans. These can be powered by petrol, diesel and clean electricity. Hyundai even works with hydrogen and has made this kind of passenger car several times for.
The two car brands will also consider whether to form a common front when it comes to the extraction of raw materials for battery production, steel and other materials.
News of the collaboration comes just one year after GM and Honda canceled their joint agreement to jointly develop "affordable" electric SUVs. An agreement that was reportedly worth a whopping 5 billion dollars.
Cooperation between car brands is not new. In fact, a good part of at least the European car industry is made up of alliances and groups all over the place.
That kind of business even extends all the way to the other side of the world. Just look at the Renault group, which in the big picture is actually called the Renault-Nissan-Mitsubishi alliance.
Read more exciting news from and about the world of cars right here!
