Ford is struggling to make money on battery-powered models while General Motors, which started more slowly, says it is getting close to that goal.
General Motors and the South Korean automaker say they will collaborate on new vehicles, buying parts and clean energy technologies.
The automaker said it would invest less in battery-powered cars and scrap a planned electric three-row sport utility vehicle.
The company led by Elon Musk is selling fewer electric cars, and its big bets on driverless taxis and artificial intelligence could take many years to pay off.
General Motors said the self-driving division’s cars will operate in Dallas, Houston and Phoenix after an accident last year. Human drivers will supervise the cars.
Ford will build large pickups at a Canadian factory that it had previously slated to produce electric vehicles, sales of which have slowed in recent months.
The agreement, if ratified, will cover 1,600 workers making batteries for General Motors in Ohio. The union said it would be a model for efforts elsewhere.
Automakers and dealers are starting to offer discounts, low-interest loans and other incentives to lure buyers as the supply of cars grows.
Automakers in the United States and their supporters welcomed President Biden’s tariffs, saying they would protect domestic manufacturing and jobs from cheap Chinese vehicles.
The gasoline-powered Malibu was the last affordable sedan sold by Chevrolet, the General Motors brand, in the United States.