GM and Hyundai Explore Potential Partnership
General Motors (GM) and Hyundai Motor are reportedly nearing a deal for Hyundai to share two electric commercial van models with the Detroit auto giant. According to a source familiar with the talks and Hyundai documents reviewed by Reuters, the deal is close to being finalized. In return, GM may provide Hyundai with pickup trucks to sell under the Hyundai brand in North America, potentially broadening the scope of their partnership.
Broader Collaboration Discussions
The potential deal could extend into a broader partnership. The source indicated that the two automotive giants are having wide-ranging discussions, encompassing joint purchasing or development initiatives involving items such as computing chips, next-generation batteries, and battery materials. This strategy is driven by the increasing competition from Chinese electric vehicle makers and the uncertain global trade environment.
Van and Pickup Truck Sharing Negotiations
Hyundai would produce the vans, selling them under both its brand and GM’s. Initially, these vans would be imported from South Korea. Hyundai is also considering manufacturing the vans in North America as early as 2028, potentially through building a new plant, expanding an existing facility, or contracting out the manufacturing. Discussions on sharing pickups focus on GM sharing its midsize trucks—the Chevrolet Colorado and GMC Canyon in the United States. Hyundai also seeks a version of GM’s full-size pickups, though this option has not been offered by GM. The pickup-sharing agreement is expected to take longer to finalize compared to the electric commercial vans. In January, Hyundai stated that it is in talks to supply electric commercial vehicles to GM. The talks are part of an preliminary agreement to see how both automakers can cut costs and speed up development through cooperation on vehicles, supply chains, and clean-energy technologies.
Both companies continue to explore potential areas of collaboration.
– General Motors –
Nothing has been finalized in ongoing talks but that the automakers are exploring deals “across key strategic areas.”
– Hyundai –
Competitive Pressures and Geopolitical Tensions
Chinese EV producers have significantly impacted the auto industry with their high-tech, low-cost models. GM’s sales in China, the world’s largest auto market, have been declining as a consequence. Hyundai, though having minimal business in China, still faces the threat of Chinese exports globally. Both automakers are also grappling with geopolitical tensions, driven by tariffs that have been implemented or threatened, particularly by President Donald Trump, which could impede their ability to use imported components and drive them to expand U.S. manufacturing. Tariff threats are also contributing uncertainty to the GM-Hyundai partnership negotiations.
Potential Benefits of the Partnership
A commercial van deal could assist GM in competing effectively with the Ford Transit and Ram ProMaster without the substantial investment required for developing its model. Hyundai is evaluating sharing compact electric commercial vans based on its ST1 electric commercial vehicle and also will give GM a larger electric commercial van that Hyundai is developing. The two automakers may share sales and service networks for the vans. GM needs new commercial vans as it is expected to phase out production of its older Chevrolet Express and GMC Savana vans soon. Initially, the smaller van would be assembled at Hyundai’s factory in Ulsan, South Korea, and potentially supplied to GM beginning in mid-2027, while the larger van will follow in 2028. The commercial van factory under consideration in North America could produce 60,000 vans by 2030 and over 100,000 by 2032. Hyundai has emerged as a challenger to Tesla in the EV market, and this collaboration with GM could give Hyundai a foothold in the lucrative U.S. commercial vehicle and truck market. Hyundai is also exploring providing GM with a small sport utility vehicle called the Creta to refresh its model lineup in Brazil.
BrightDrop EV vans fill a lot due to slow sales.
