General Motors and Hyundai to work together on new vehicle development

General Motors (NYSE:GM) and Hyundai Motor Company (OTCPK:HYMTF) inked a deal on Thursday to explore future collaboration across key strategic areas, including passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies

The automakers said they plan to will look for ways to leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster. The auto giants will also review opportunities for combined sourcing in areas such as battery raw materials, steel, and other areas.

General Motors (GM) CEO Mary Barra said a partnership between the two companies has the potential to make vehicle development more efficient by driving greater scale and supporting disciplined capital allocation. “Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently,” she highlighted.

Shares of GM (GM) moved 0.6% higher in premarket trading.