Hyundai Motor Company has agreed to explore the potential for broad based collaboration with Iveco Group in areas such as new technology development, component sourcing and mutual supply.

The two companies recently signed a Memorandum of Understanding (MOU) at Hyundai Motor’s headquarters in Seoul, the event attended by Hyundai Motor CEO Jaehoon Chang, the head of Hyundai’s commercial vehicle development tech unit Martin Zeilinger, Iveco Group CEO Gerrit Marx and Iveco chief technology & digital officer Marco Liccardo.

The two companies will initially assess and discuss the potential to collaborate in the development of key technology such as electric powertrains, hydrogen fuel cell systems, autonomous driving and connectivity, while also looking into the potential for mutual supply of vehicles, platforms, powertrains and other components.

Hyundai said the agreement was a “further step in Hyundai Motor and Iveco Group’s independent strategies to create leading innovative solutions in today’s fast-changing environment by building an ecosystem of mutually beneficial partnerships”.

With competition in the global medium and heavy truck segment continuing to rise, the two companies stand to benefit from opportunities to share the cost of new technology development, reduce the cost of sourcing components and systems and improve access to overseas markets. If the initial phase is successful, the partnership could be further strengthened by an equity tie-up.