Key Takeaways
🌎 Markets: Four ICE/hybrid vehicles for Central & South America, one EV van for North America
🚗 Models: Compact SUV, compact sedan, mid-size pickup, full-size pickup, commercial EV van
📊 Scale: Targeting 800,000 annual sales when fully scaled
🔧 Development: GM leads truck platforms, Hyundai leads compact + EV van
🌱 Sustainability: Exploring low-carbon steel and joint sourcing initiatives
GM and Hyundai Announce Strategic Collaboration
According to a press release from General Motors, Hyundai Motor Company and General Motors have announced plans for their first five co-developed vehicles, marking a significant milestone in their previously announced strategic collaboration.
The two companies will co-develop four vehicles for the Central and South American market, including a compact SUV, a compact sedan, and full-size pick-up truck, as well as a mid-size pick-up, all with the flexibility to use either internal combustion or hybrid propulsion systems. Hyundai and GM will also co-develop an all-electric commercial van for North America.
Hyundai and GM expect sales of the co-developed vehicles to be more than 800,000 units a year once production is fully scaled.
General Motors says it will lead the development of the mid-size truck platform, while Hyundai will lead on the compact vehicle and electric van. The two companies will share common platforms and develop unique interiors and exteriors consistent with their respective brands.
Design and engineering work is underway on the new vehicles for the Central and South American markets, which will launch in 2028. The electric commercial van will be manufactured for the U.S. as early as 2028.
Executive Commentary from GM and Hyunda
“Hyundai’s strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets,” said José Muñoz, president and CEO of Hyundai Motor Company. “Our combined scale in North and South America helps us to more efficiently provide our customers with more of what they want – beautifully designed, high-quality, safety focused vehicles with technology they appreciate.”
Shilpan Amin, GM senior VP and global chief procurement and supply chain officer, said that these vehicles are targeted at the largest segments in the Central and South American markets, as well as the commercial segment in North America.
“By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost,” Amin said. “These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale.”
The two companies are planning joint sourcing initiatives in North and South America for materials, transport, and logistics. Further areas for potential joint operations include raw materials, components, and complex systems.
Hyundai Motor and GM also agreed to explore collaboration on low-carbon emissions steel as part of their commitment to sustainable manufacturing but neither company has announced where these vehicles will be specifically produced as of yet.
Following the signing of a framework agreement in September 2024, the two companies continue to assess additional joint vehicle development programs for global markets, as well as collaboration opportunities across propulsion systems, including internal combustion engines, hybrid, battery electric, and hydrogen fuel cell technologies.
Market Challenges and Chinese Competition
According to a recent article by Nora Eckert of Reuters News, the five new vehicles from GM and Hyundai will seek to lower costs amid growing competition from Chinese automakers. But there have been questions on whether this alignment will create meaningful synergies.
"Even if they sell those new models in South America, it's hard to beat Chinese competitors which already are leading in the electric-vehicle market with low prices," said An Hyung-jin, chief investment officer at Seoul-based hedge fund Billionfold Asset Management. "Hyundai might be able to learn from GM about how to build pickup trucks, but it would take some time to generate earnings," he added.
The United States and South Korea have reached a trade agreement for a 15 percent tariff on U.S. imports from South Korea, including vehicles. This is the first major partnership for vehicle development for Hyundai Motors.
EV Knowledge That Drives Smarter Decisions
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