GM, Hyundai in Talks to Share Vehicles in North America
According to sources, Hyundai Motor and General Motors are nearing an agreement that could see the two automakers sharing vehicle platforms and technologies, potentially reshaping their presence in the North American market. The deal may involve Hyundai sharing electric commercial van models with GM, while GM could provide pickup trucks for Hyundai to sell under its own brand.
The potential partnership, reported by Reuters, could expand to encompass a broader range of collaborations, including joint efforts in purchasing and in the development of crucial components like computing chips, next-generation batteries, and battery materials. This move reflects a strategic response to the growing competition from Chinese electric vehicle (EV) makers and the pressures of a potentially unstable global trade environment.
Hyundai is expected to produce the electric vans, initially importing them from South Korea. However, documents reviewed by Reuters suggest the company is considering manufacturing the vans in North America by 2028. This could involve building a new plant, adding production capacity to an existing facility, or contracting out the manufacturing to a third party.
The discussions around pickup trucks center on GM sharing its mid-sized trucks, such as the Chevrolet Colorado and GMC Canyon, with Hyundai. There is also interest from Hyundai in selling a version of GM’s full-sized pickups, though this option has not been presented by GM.
The commercial van arrangement appears to be closer to finalization compared to the pickup sharing deal. Furthermore, the automakers are also exploring the possibility of Hyundai supplying GM with compact SUVs for the Brazilian market.
In January, Hyundai announced it was discussing supplying electric commercial vehicles to GM as part of a preliminary agreement exploring collaboration on vehicles, supply chains, and clean-energy technologies, with the goal of cutting costs and accelerating development.
While General Motors declined to comment on the specifics of the negotiations, they stated that both companies “continue to explore potential areas of collaboration.” Hyundai has also confirmed that talks are ongoing but that no deal has been finalized. They added that they’re exploring deals “across key strategic areas.”
Competitive Pressures and Geopolitical Factors
Chinese EV manufacturers have disrupted the auto industry with high-tech, cost-effective models. As a result, GM is among the traditional automakers that have seen a decline in sales in China, the world’s largest auto market. They are now looking to increase revenues elsewhere. Hyundai’s business in China is small, but the company faces potential threats from Chinese exports globally.
Both automakers are navigating geopolitical tensions, especially those exacerbated by tariffs or potential tariffs imposed by the U.S. This could affect their ability to import components and may drive the need to increase manufacturing in the U.S. Tariff threats are also impacting the certainty of the GM-Hyundai partnership discussions.
Analysts have suggested such a commercial van deal could significantly help GM compete with rivals like Ford and Ram, without the expensive investment of developing its own van model. Since GM plans to phase out production of its Chevrolet Express and GMC Savana vans, the addition of new commercial vans is a high priority.
Hyundai is looking at sharing its compact electric commercial vans based on the ST1 electric commercial vehicle. Documents also suggest that they may provide GM with a larger electric commercial van that Hyundai is developing to compete with the Mercedes-Benz Sprinter. According to the documents, the two companies may also share sales and service networks for these vans.
The smaller van model would initially be assembled at Hyundai’s factory in Ulsan, South Korea, and could potentially begin being supplied to GM by mid-2027. Production of a larger van, similar in size to Hyundai’s Solati, would follow in 2028.
The proposed new North American commercial van factory is targeting production of 60,000 units by 2030 and exceeding 100,000 units by 2032.
Hyundai’s U.S. Growth and Market Strategy
While its sales are declining in China, Hyundai is experiencing growth in U.S. sales. The company – along with GM – is emerging as a strong competitor to Tesla in the EV market. Hyundai is seeking to leverage this partnership to strengthen its presence in the U.S. commercial vehicle and truck markets, where they currently have a limited presence.
Hyundai could benefit from GM sharing its popular pickups, and in return, is considering offering GM a small sport utility vehicle called the Creta to update its model lineup in Brazil.
GM hopes that partnerships with Hyundai can help their struggling business in China. The company could potentially expand its presence in South American markets by using Hyundai’s small and mid-sized vehicle platforms.
